In the last three months, lenders have been aggressively promoting more non-QM jumbo loan products, with jumbo credit availability increasing by almost 6% – the highest level since March 2020, according to the Mortgage Bankers Association.
Where once brokers shied away from non-QM, put off by the product’s apparent complexity and the subprime connotations, firms specializing in these types of loans have, in recent months, reported an increase in the number of inquiries from the broker community.
Mojarro, who has been at A&D since 2019, confirmed that attitudes have been changing. “I’ve been in the non-QM space for almost five years, and even up to COVID, there was still some pushback, but this year brokers are hungry for knowledge.”
The discussion has now switched to learning about how to market the product, he added.
Much of the renewed interest has to do with the rise in the rates, but it’s also down to changing labor patterns. According to recent data from the US Bureau of Statistics, there are roughly one million more self-employed people in the country compared to 2015.