If you can’t do a non-QM loan, your partners are going to find someone who will—so why would you want to take that chance? Conquer what you don’t know.
Dennis Colon, regional vice president with Angel Oak Mortgage Solutions, explains that Angel Oak was there at the beginning, when bankruptcies, short sales, and foreclosures were the bread and butter of the non-QM space. Now the non-QM market has expanded, and Colon says that originators can’t afford the losses that come from turning down non-QM loans from trusted partners. Once someone else gets their foot in the door, they’re going to elbow you out, so originators have got to do non-QM loans to hold on to all of their business.