“Predicted self-employment numbers are increasing, and that’s the impetus of non-QM loans for self-employed borrowers because, as we all know in the US, if you don’t have a W2 and a tax return, it’s historically been more difficult to get a mortgage loan,” he said.
“But we’re very well positioned going forward in this new economy and really support self-employed borrowers at Fundloans.”
To meet the challenge, brokers should resist the temptation of gravitating towards “the low hanging fruit” of a qualified mortgage.
Hidy said: “Historically non-QM has been a little bit more challenging for the broker, so if they have 10 Fannie Mae deals on their desk, they’re going to really focus on that and maybe push the non-QM deals to the side of the desk.”
Weaning them off the habit will prove easier once interest rates increase, as they are sure to do, he added. “We know how economies flow, and at some point conventional rates won’t stay as low as they’ve been these last few years – that will benefit the non-QM space,” he said.