NAMB president says condo rule changes are a broker opportunity in disguise
Brokers who move into that education void will be building a referral network, not just solving a problem, he said.
“Right now it’s about education, preparing the associations, use it to your advantage,” he said. “We are the expert right now. Go out there and educate these people, and then go to the associations. You can even ask them to a board meeting and explain to them what’s going on. Half these associations don’t know. And it makes you the expert. And who’s going to get referred financing? You’re going to get referred financing.”
Non-QM filling an important role
When brokers find properties that aren’t eligible for financing for agency loans, White said that having strong non-QM lending partners lined up is critical. He said it allows brokers to have contingencies already figured out before they’re even needed, making sure that the deal is able to be closed without losing a customer to another loan provider.
He said the reluctance many brokers have had toward non-QM, associating it with the subprime era, is costing them business. He also said it’s just not accurate.
“I had someone knocking on my door for years about non-QM. I said I’m not doing subprime again,” he said. “And it got to the point things slowed down in ’22, and people started coming to me — bank statement loans, non-QM condos, non-warrantable. And I started doing some. In the past three years, 40% of my business is non-QM condos, whether it’s bank statement condos, whether it’s DSCRs. Had I not had that, I would have had a big hit to my business.”
