12/29/2023 0 Comments Qm vs non qm“In such a volatile market, it became unclear whether they would be able to pay back their loans.” By Q3, as the economic outlook became more promising in terms of both declining unemployment and rising GDP, lenders began offering non-QM products again investors cautiously considered reviving non-QM activity as part of their real estate portfolio management strategies and non-QM market momentum began building once again. “There was a lot of trepidation in the market about what might be happening with these borrowers,” says Brian Pidgeon, vice president and national sales executive at ServiceLink. Uncertainty shifted lenders and investors into wait-and-see mode, where they remained for at least a couple of months. But non-QM originations and securitizations froze in their tracks when COVID-19 reared its ugly head last March. As a solution for self-employed and other borrowers who don’t fit into the conventional Fannie Mae, Freddie Mac or FHA credit boxes, as well as for real estate investors looking to fix and flip or buy and hold properties, non-QM products have been steadily gaining traction for over a decade. The pre-pandemic momentum of the gig economy created new opportunities for lenders and investors open to exploring the potential of non-qualified mortgage (non-QM) loans. Strategic partnerships are essential to mitigating non-QM risk and building a high-performing real estate portfolio.
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