The
challenges
in
today’s

mortgage
market
have
caused
many
originators
to
expand
their
loan
product
offerings
outside
of
qualified
mortgage
(QM)
criteria
set
by
the


Consumer
Financial
Protection
Bureau
(CFPB).
They
have
embraced

non-QM
as
a
means
to
stay
competitive
and
protect
their
referral
base.
The
bottom
line
is
that
all
originators
need
a
wide
array
of
products
to
compete.

Higher

interest
rates,
shrinking
Agency
business
and

low
inventory
still
threatens
volume.
Those
who
have
adopted
non-QM
are
seeing
additional
loans
closed
each
month
they
otherwise
wouldn’t
have
procured.
Why
is
it
that
there
are
still
many
originators
out
there
still
reluctant
to
do
them?
After
all,
adding
non-QM
simply
means
access
to
a
larger
borrower
pool
and
the
opportunity
to
grow
your
business.
Are
you
one
of
the
originators
still
not
sure?
Maybe
it’s
time
to
take
a
deeper
look
into
what
non-QM
actually
means
and
how
it’s
moving
the
needle
for
your
competitors.

Non-QM
is
a
stable
sector

Non-QM
loans
have
been
around
for
over
a
decade
and
continue
to
bridge
the
gap
for
creditworthy
borrowers
who
fall
outside
Agency
guidelines
and
the
ability
to
qualify
for
a
loan.
Non-QM
loans
perform
well,
and
the
credit
quality
is
sound.
The
fact
that
non-QM
loans
are
not
held
to
the
same
restrictions
as
QM
loans
does
not
mean
that

borrowers
or

lenders
are
putting
themselves
at
risk.
Non-QM
lenders
are
held
to
checks
and
balances
to
protect
themselves,
borrowers
and
their
originator
partners.

Deephaven,
with
longevity
and
expertise
in
the

non-QM
space,
has
mastered
manual
underwriting
that
serves
as
an
alternative
to
automated
underwriting.
We
utilize
common-sense
lending
and
offer
exceptions
that
enable
a
range
of
flexible
funding
options.
Deephaven’s
sales
team
strategically
uncovers
every
loan
option
and
exception
to
meet
the
distinctive
needs
of
borrowers.

In
addition
to
stealth
underwriting
skills,
it
is
imperative
to
respond
to
changes
in
the
market
proactively.
A
non-QM
lender
like

Deephaven
has
the
ability
to
quickly
pivot
to
meet
market
demands.
The
ability
to
do
so
enables
Deephaven
to
remain
stable
and
helps
the
industry
thrive.

Originators
successful
in
non-QM
know
it’s
not
just
for
fall-out
situations

In
order
to
truly
grow

volume
with
non-QM
you
have
to
actively
pursue
non-QM
borrowers.
It
isn’t
difficult
when
you
realize
that
they
are
all
around
you
in
everyday
life.

Realtors,
small
business
owners,
gig
workers,
freelancers,
real
estate
investors,
CPAs,
doctors
and
lawyers
with
their
own
practices
all
could
be
a
non-QM
borrower.
Non-QM
isn’t
established
simply
because
loans
fall-out
of
Agency.

Non-QM
is
an
established,
mainstream
sector
because
a
large
population
of
people
don’t
fit
the
profile
of
a
QM
loan.
They
need
someone
to
start
the
application
process
for
non-QM
from
the
very
start
–
not
after
a
fall-out
situation.
The
last
thing
a
lender
needs
in
this
competitive
market
is
the
reputation
for
fall-out.
Get
it
right
the
first
time
and
watch
your
referral
base
grow.
It
can
be
true
for
non-QM
too,
but
not
if
you
have
the
right
lender
such
as

Deephaven.
So
where
are
these
non-QM
loans
just
waiting
to
happen?

Real
estate
investors
build
portfolios
in
every
market
condition

There
is
a
large
pool
of
borrowers
who
purchase
regardless
of
market
conditions
–
real
estate
investors. 
In
2023,
27%
of
all
purchases
were
investor
transactions,
according
to

CoreLogic.
DSCR
loans
are
often
a
go-to
loan
solution
for
many
seasoned
investors
because
they
know
these
loans
to
be
easy
to
close
and
a
low
hassle
option.

Today’s
changing
workforce
increases
the
demand
for
non-QM

The
U.S.
workforce
is
changing.
According
to
the

Bureau
of
Labor
Statistics,
there
are
around
16
million
self-employed
in
the
U.S.
today
–
and
growing.
During
the
pandemic
a
record
number
of
entrepreneurs
started
online
businesses.
The
number
of
small
businesses
continues
to
grow
each
year.
Many
of
these
entrepreneurs
will
miss
traditional
loan
requirements
for
a
number
of
reasons.
One
common
reason
is
due
to
the
tax
deductions
they
are
allowed
to
take.
Based
on
prudent
tax
strategies,
they
can’t
use
their
tax
returns
to
verify
income
for
a
home
they
can
well-afford.
The
solution
is
a
Bank
Statement
loan
which
falls
under
non-QM.
Bank
Statement
loans
are
one
of
Deephaven’s
most
utilized
products
due
to
the
significant
number
of
borrowers
who
need
them.

Debt-to-income
and
credit
events
are
increasingly
high

Debt-to-income
(DTI)
ratios
have
become
a
common
issue
as
rising

interest
rates
have
caused
DTIs
to
exceed
traditional
limits.
Non-QM
options
include
products
that
allow
for
higher
DTIs.
 The
Asset
Utilization
feature
allows
borrowers
to
qualify
solely
on
their
assets
or
you
can
augment
bank
statement
income
through
asset
utilization
to
help
qualify
the
borrower.

Lower
credit
scores
aren’t
always
an
obstacle
when
it
comes
to
purchasing
a
home.
It
is
always
something
a
borrower
stresses
over
because
they
don’t
understand
the
options
out
there.
Lenders
who
don’t
offer
non-QM
probably
turn
borrowers
away
if
their
credit
scores
fall
below
Agency
guidelines.
The
reality
is
that
a
seasoned
non-QM
lender
can
likely
get
that
loan
closed
as
non-QM
products
allow
lower
credit
scores.

The
bottom
line

Creditworthy
borrowers
who
require
the
flexibility
of
non-QM
will
always
be
around
confirming
that
non-QM
will
always
be
in
demand.
Those
who
embrace
and
become
experts
will
become
the
go-to
experts
for
Realtors,
borrowers,
investors
and
referral
partners.

The
key
is
to
partner
with
a
lender
like

Deephaven
Mortgage
who
is
a
true
pioneer
and
leader
in
the
non-QM
space.
Non-QM
is
as
easy
to
close
as
Agency
loans
and
originators
are
not
expected
to
come
to
the
table
as
experts.

Deephaven
Mortgage
will
teach
you
to
become
an
expert
while
you
close
these
loans.

There
will
always
be
tailwinds
and
headwinds
in
the
mortgage
industry.
Non-QM
can
help
you
weather
any
market
condition
to
ensure
that
your
business
growth
is
protected.
Stay
ahead
of
the
competition
positioning
yourself
as
a
go-to,
reliable
and
adaptable
source
for
all
borrowers.
The
only
way
to
know
if
non-QM
can
really
do
this
for
you
is
to
start
with
one
closed
loan
and
see
what
happens.
Deephaven
Mortgage
is
ready
to
help
you
make
that
happen.

Learn
more
about
becoming
a


Deephaven
Mortgage
approved
partner.

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