How one top mortgage lender is using innovative loan programs and technology to assist their brokers and close more loans
This article was produced in partnership with LoanStream.
Karen Surca of Mortgage Professional America sat down with Will Fisher (pictured right), executive vice president of non-QM and jumbo at LoanStream to discuss competitive price changes and the relaunch of the “Lounge."
Now that COVID-19 is slowly becoming less of a concern, the primary focus for many mortgage lenders across the country is fast becoming the introduction of new products and new initiatives or fine-tuning existing lending platforms. LoanStream Mortgage is no exception.
With a recent announcement of non-QM price improvements, in addition to the launch of the Lounge (TPO portal serving prime and soon non-QM loan programs), LoanStream is keeping a competitive edge by speeding up and simplifying the mortgage lending process through its impressive breadth of programs.
In the unique position of being able to span both prime and non-prime lending, LoanStream offers tailored products for both traditional, amortized loan options in addition to an impressive array of proprietary non-QM loan options called its NanQ offering. Recently with the announcement of its own 100% CLTV, down payment assistance program, MaxONE, LoanStream has cornered the market in product.
William Fisher, executive vice president of non-QM and Jumbo at LoanStream, pointed out that the sheer opportunity for growth, particularly in the non-QM space, coupled with the initiatives that LoanStream has taken throughout the pandemic, positions the lender perfectly to capitalize on a robust market. Keeping in mind the needs of agency and non-QM customers is paramount to LoanStream’s successful business model.
LoanSteam’s recent price improvement is an initiative that “We are really excited about,” Fisher relayed.
“The price improvements that we have rolled out improved our pricing by three-eighths across the board,” he said. “We have also improved the pricing for certain products like VOE, 1099 and our second home product. We see this as a bold opportunity given the volatile market conditions to continue to expand market share.”
Serene Vernon, president LoanStream added, “We think that our products are best of breed from an LTV and credit score perspective and are at a very manageable risk level for us and our secondary partners.”
Streaming the mortgage process through the “Lounge”
What if you could sit back, relax, submit, price, and disclose. Sound too easy? It could be.
LoanStream is releasing the Lounge for its NanQ (non-QM) programs in November that will streamline the non-QM process from days to minutes.
Mortgage brokers can then upload conditions, lock, and manage their file quickly and easily.
“We have been refining the portal, and we’re getting very close to releasing it for non-QM customers, available now for our Prime customers,” Fisher said.
“Through this unique system, the mortgage broker can manage the entire process for uploading the loan, pricing, disclosing in minutes, ordering their appraisal, locking in their rate, viewing all their fees, uploading their conditions, reviewing their disclosures, and managing the entire process from start to finish in one easy location,” Fisher explained.
When comparing the lounge to other similar systems with outside agencies, Fisher is confident that LoanStream’s centralized mechanism outperforms on several levels.
“Our technology is very tight, very succinct and efficient. Brokers can literally drop a loan in and have it disclosed in a matter of minutes, not hours, not days, minutes. And it’s quite extraordinary,” Fisher stated.
“You see some of the bigger players in the agency world that have put similar technology out there for a little while now. But to see it for non-QM is exciting. We think it is going to be a game-changer. It just makes the entire process better for everyone,” Fisher concluded.
When asked what is the one aspect that sets the lounge apart from other similar platforms, Fisher is quick to answer. “It comes down to disclosing the loan. In most cases, when you work with a non-QM lender, a broker uploads their documents and lenders usually take the max amount of time to send those disclosures out. In the Lounge we can cut three days off that process, by allowing brokers to control their documents and disclose the same day,” Fisher highlighted.
“We have shortened the timeframe for a loan to move through and close. On top of that, once the conditions are uploaded by the broker, they are instantly acknowledged by the account managers who can review the documents for underwriting, which adds a level of efficiency to the process, quicker notification, and ultimately faster decisions,” Fisher stated.
Fisher predicts that the industry is slowly moving away from a manual process and moving towards the technology that the Lounge provides.
“Brokers are coming to the Lounge on their own, seeing the benefits and advantages it creates,” said Serene Vernon, president, “they can see the immediate benefits in their Prime loans closing faster, often removing 2-5 days off the typical origination process.”
In addition to offering new products on the agency and non-QM side, including the JumboONE, a new super jumbo loan of up to five million, LoanStream is looking ahead with increased enthusiasm, especially in the non-QM space.
“Believe it or not, COVID has turned out to have been spectacular for the non-QM space. Many industry pundits were expecting non-QM loans not to perform and be somewhat like subprime. It was the opposite. The non-QM loan product and borrower performed better than many agency loans,” Fisher elaborated.
What does 2022 look like?
“I think it’s going to be a very progressive year. We’re anticipating the non-QM sector to grow past it’s 2019 highs,” Fisher said.
LoanStream has clearly positioned itself to take the innovation process as far as needed while making the process easier for the broker to close more loans and become even more competitive in their markets.