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MortgageOrigination

The looming non-QM commoditization question

While the space has become commoditized with different types of documentation accepted, underwriting still remains a challenge

HW-LO-mortgage
An LO with a client at the closing table

The question was on the minds of many at the Waldorf Astoria in Dana Point, California on Thursday – will non-qualified mortgage products become more commoditized as the rising rate environment wallops agency lending?

“The way that we like to look at solving that problem is through a click of a button, distributing the loan at an even price to sell that to a cadre of investors,” Al Qureshi, managing partner at Blue Water Financial Technologies, said on Thursday during IMN‘s third annual Non-QM Forum in California. Blue Water Financial Technologies is a provider of asset valuation, mortgage servicing rights (MSR) distribution, MSR hedging and electronic solutions to mortgage lenders. 

Qureshi added: “For an originator to do all these things right now there are a number of fixed costs. Investors will have to figure out what the pricing eligibility requirements are, you’ll have to bend backwards to integrate that into your pipeline. That takes a lot of time. The way forward is streamlining the process all the way through.”

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