Newfi launches correspondent lending channel

Expansion comes at a time of intensified competition in tighter market

Newfi launches correspondent lending channel

Newfi, an industry-leading lender specializing in non-agency mortgage solutions, has launched its correspondent lending channel.

Mortgage Professional America reached out to Steve Abreu, CEO and founder of Newfi, to learn more about what prompted the launch. He suggested the move was something of a response to a tightened market calling for more opportunities to expand market share. Newfi is an affiliate of Apollo Global Management, and the launch fits into the parent company’s corporate structure, he said.

“We’re predominantly a wholesaler owned by Apollo,” Abreu said. “It’s just another line of business that provides us with a more stable platform than other buyers of these types of loans.”

He described how the strategic expansion enables Newfi to extend its proven non-qualified mortgage (Non-QM) products to mortgage bankers across the country, empowering them to better serve their customers with flexible financing options.

"We are proud to now offer Newfi’s proprietary Non-QM products to mortgage bankers," he said. "Our expansion to the correspondent lending channel solidifies Newfi's commitment to the non-agency space and strength as a lender in today’s marketplace. It’s a perfect match with our ownership structure and the customer provides value versus what the other conduits are able to do.”

He noted that a handful of experienced non-QM correspondent account executives would be hired to support the expansion into correspondent lending. “Three or four,” he said when asked for the number of new hires.

Non-QM has long been a specialty

Abreu stressed the company has long been engaged in non-QM since the company’s 2014 founding, but the expansion provides another channel for the space. Last February, the company became majority-owned by Apollo, he noted. “We’ve been doing that for quite some time with mortgage brokers,” he said. “This is another channel.”

He spoke to the rise of the non-QM space in light of a tightened housing market. “It’s more indicative of the times we’re in,” he said. “It’s harder to compete in the agency and FHA market. More lenders and brokers are going into this space for added revenue. It’s something Newfi is focused on. It’s our core business and core strategy, and we’re bringing unique products and ideas into the marketplace.”

As an affiliate of Apollo Global Management, company officials said in a separate news release, Newfi Correspondent stands ready to help mortgage bankers with the benefit of Apollo’s expansive resources and mortgage expertise. “Apollo has a deep understanding of the Non-QM sector, they are steadfast in their commitment to the residential real estate industry, and they can offer us strong capital support to help Newfi mitigate risk and weather market volatility,” company officials added.

“We are excited to develop meaningful correspondent lending relationships that help mortgage bankers grow their businesses,” Dan Bayer, SVP Non-QM development & strategy said in a prepared statement. “Non-QM product offerings are critical to any mortgage bankers’ offerings in today’s market. Newfi is leading the way in terms of innovation and service for these originations.”

The company touted the lender’s reputation for delivering unique loan options for self-employed borrowers, real estate investors, and more borrowers who don’t fit agency guidelines with detailed attention to every file. Newfi will offer their Sequoia Portfolio Non-QM offerings with up to $5 million loan amounts, multiple income types (full doc, bank statement, 1099, asset depletion, and more), and competitive pricing, officials noted. Moreover, officials added, the company also will offer other non-QM programs and DSCR loan offerings through their correspondent lending channel.

New logo buttresses non-QM focus

Earlier this year, Newfi unveiled a new more modernized logo intended to convey its “…ongoing commitment to innovation in the mortgage space through technology and unique financing solutions to meet the changing needs of today’s customers,” company officials said at the time. Concurrently, Newfi added a pair of unique product solutions to its offerings: a Non-QM 2-1 Buydown and a Graduated Payment Mortgage.

"Our new logo is an exciting evolution for our brand and a testament to our growth and success," Kayla Padol VP of marketing, said at the time. "We are confident that our new look will better convey the value we bring to our customers, embrace the original vision for the company, and will help us continue to expand our reach in the years to come."

The new logo (pictured below) features a sleek, modern design meant to evoke the sense of creativity and forward-thinking in the housing industry Newfi brings to the table, officials said. A new font and a few new colors also joined the expanded branding put forth by the company.

"We are thrilled to introduce our new modern logo as part of our ongoing efforts to improve and enhance the customer experience," Abreu said. "Our refreshed look represents our commitment to delivering innovative, flexible, and customer-focused solutions in the mortgage space."

As part of its product development, Newfi has introduced an array of products, including Alternative Income (Bank Statement,1099, Asset Depletion) Loans, Debt Service Coverage Ratio (DSCR) Investment Property Loans, Jumbo Loans, and Interest Only Loans. Newfi also offers a state-of-the art broker portal, personalized trainings, and customized white label marketing for their broker relationships in their wholesale division, according to corporate literature.

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