Specialty lending in 2024: Industry leaders reveal top picks

From second mortgages to ITIN products, experts share their insights on the most promising lending options for the upcoming year

Specialty lending in 2024: Industry leaders reveal top picks

In the inaugural edition of Mortgage Professional America’s “The Big Question” series, industry experts weighed in on the most promising specialty lending options as we approach 2024, offering insights into a market still reeling from the tumultuous events of 2023.

One standout option is the second mortgage product, according to William Fisher, EVP of non-QM and jumbo lending at LoanStream Mortgage.

“You’ve got a lot of borrowers out there who have 2% to 4% interest rates on their 30-year fixed. They don’t want to change that to take some cash out. So instead, we’re offering this closed and second mortgage product that allows them to do it,” Fisher said. “It’s a win-win for the borrower and everyone.”

John Wise, EVP of sales and national production at Newfi Wholesale, identified three key growth areas: an increase in prime jumbo, bank statement loans, and the DSCR product. Wise observed a significant rise in self-employed borrowers due to the pandemic, leading to higher demand for bank statement loans.

“Lots of people are investing in real estate, and the industry is finding creative ways to help satisfy that demand,” he said. “The agencies have taken a less aggressive approach to lending to investors because their charter really is focused on homeowners. And so, we see an opportunity in the private lending space to fill that gap.”

Tristan Kirk, principal broker and managing partner at Citadel Mortgage, sees reverse mortgages as a significant opportunity.

“I think when you look at the general age of the population and then the transfer of wealth… I think reverse mortgage is the product to lean on right now,” Kirk said.

And that’s just the tip of the iceberg. If you want to uncover more opportunities in specialty lending, watch the first Big Question episode for more high-level insights.