“I would just tell them if they haven’t looked at non-QM – if they don’t understand that – reach out to some of the top originators like Acra,” he said. “We’re here to help and hold their hand through the process. Because our volumes aren’t down. We’re up 20% to 25% year over year. We’ve increased the last five years every year if you take out COVID.
“So this is a growing business. The non-QM market is definitely a growing market as more and more people get educated whether it’s real estate agents or brokers.”
Federal Reserve officials have suggested that the sharp interest rate hikes over the past two years may take longer than expected to curb inflation, indicating a potential delay in rate cuts this year. https://t.co/IEzvIGjUGq#businessnews #economicoutlook
— Mortgage Professional America Magazine (@MPAMagazineUS) May 14, 2024
Investors growing in prominence among company’s clients
Lind said that when he arrived at Acra four years ago, around 25% of the company’s business was made up of investor loans, compared with 75% for bank-statement, owner-occupied applicants. In the time since, that ratio has evened out to a 50-50 split – due in large part, he said, to the perceived value and security in real estate investment compared to other options.
“More and more people, given the strength in the housing market, want to make an investment in buying investment property, maybe as opposed to doing something in the stock market,” he said, “given the volatility and what they’ve seen over the last couple of years.
“They feel safer. It’s good cash flows. So I think there’s a massive opportunity here if you’re a broker – and if you need that help, we’re here to hold your hand and teach you the product.”
