Why some non-QM loans are suddenly beating conventional rates
She priced the loan with a couple of non-QM lenders, and every one of them came in below conventional, Bloom said.
One of the biggest differences Bloom cites is the volatility of pricing for agency loans compared to the non-QM market.
“With conventional financing, the rates can change five times a day, especially when you have market conditions as they have been over the last few weeks,” she said. “But the non-QM market, they just don’t change as quickly. Have they gone up? Absolutely. But they don’t react as quickly to go up. It’s a little bit of a slower process.”
Why some brokers hesitate
Bloom said the pricing shift has not changed how every broker feels about non-QM. She heard that in person at a dinner during the Association of Independent Mortgage Experts (AIME) Fuse event in Austin.
“I know a lot of other mortgage brokers are scared of non-QM,” she said. “I was sitting across the table from these great brokers who specialize in VA. One of the guys said, ‘I’m terrified to do non-QM. I’m stressed out. I don’t like it. I’m worried for my client. I try to stay away from that as much as I possibly can.’ And I’m like, why? I think some of it’s because he doesn’t know the programs as well.”
