In
the
non-QM
segment,
Rate
originated
about
$2.8
billion
in
2024,
which
was
a
“massive
gap
for
us,”
according
to
President

Shant
Banosian.  

“[Non-QMs
are]
something
we
are
super
committed
to
because
we
have
the
widest
variety
and
strongest
non-QM
product
offering
in
the
mortgage
space,”
Banosian
said
in
an
interview
with

HousingWire.
“Our
ultimate
goal
is
to
double
our
non-QM
business
in
2025
and
eventually
have
it
become
almost
20%
of
our
production
here
at
Rate.” 

Banosian,
who
is
not
only
the
company’s
president
but
also
one
of
its
top
originators,
said
that
non-QM
products
made
up
nearly
10%
of
his
personal
production
in
2024.
He
said
he
was
“a
little
delayed
in
understanding
and
deploying
the
product,”
but
now
that
he’s
committed,
it
can
be
a
“game
changer.” 

Dubbed
Rate
Portfolio,
the
new
products
are
being
introduced
in
a
competitive
purchase
market.
Some
prospective
borrowers
—
particularly
those
who
fall
outside
rigid
income
qualification
framework
from


Fannie
Mae
and


Freddie
Mac
—
need
to
“make
non-contingent
offers
and
move
quickly
without
traditional
financing
roadblocks,”
the
company
stated. 

One
offering
is
a
mortgage
for

self-employed
borrowers
with
flexible
documentation
requirements
—
such
as
business
cash-flow
statements
or
1099
forms
—
instead
of
traditional
tax
returns.
The
product
requires
just
one
year
of

income
verification. 

Another
option
allows
borrowers
to
qualify
based
on
assets
alone
or
in
combination
with
income
—
including

retirement
accounts,
investment
portfolios,
money
market
funds
or
inheritances.
Liquidation
of
assets
is
not
required
to
determine
eligibility. 

A
separate
investor-focused
product
allows
qualification
based
on
property
cash
flow
without
requiring
tax
returns.
Borrowers
must
meet
a
minimum

debt-service
coverage
ratio
of
1.0. 

Rate
is
also
introducing
a
“Buy
Before
You
Sell”
product,
enabling
borrowers
to
make
offers
without
first
selling
their
current
home.
It
removes
the
need
to
qualify
for
two
mortgages
simultaneously,
although

appraisal,

credit
score
and
minimum

equity
requirements
still
apply.

Kate
Amor,
Rate’s
executive
vice
president
and
head
of
enterprise
products,
said
in
a
statement
that
these
products
“unlock
common-sense
financing
options
that
weren’t
previously
accessible
through
traditional
lending
channels.”

Amor
and
Banosian
are
actively
promoting
the
product
line
through
in-person
training
with
loan
officers,

real
estate
agents
and
financial
advisers.
These
products
disappeared
after
the
financial
crisis
of
the
late
2000s,
and
many
people
don’t
even
know
they
are
available
as
a
viable
solution,
Banosian
said. 

Among
loan
officers,
“the
biggest
misconception
is
that
these
loans
are
more
difficult
to
originate
and
take
longer,”
Banosian
said.
At
Rate,
a
non-QM
loan
can
be
originated
in
as
little
as
seven
days,
he
added.

“From
an
affordability
standpoint,
the
pricing
was
not
that
much
different
in
a
lot
of
cases,
and
it’s
much
cheaper
than
what
was
available
to
them
alternatively,”
Banosian
said.

“In
some
cases,
the
product
offerings
are
better
than
conventional
financing
terms.
In
other
cases,
they’re
not
as
good.
It’s
all
just
based
on
the
risk
level,
between
things
like
credit
score,
down
payment,
the
way
the
loans
are
being

underwritten,
all
the
different
factors.”

Regarding
Rate’s
post-origination
strategy,
Banosian
said
it
varies
based
on
market
conditions,
investor
appetite
and
balance-sheet
strategy. 

“We
want
to
be
super
competitive
on
the
front
end
from
a
pricing
standpoint
and
allow
for
scalability
on
the
back
end
with
our
distribution
model,”
Banosian
said.
“Our
goal
is
always
to
be
at
the
most
competitive
price
and
be
an
industry
leader
in
place.
So
we’re
always
looking
to
have
our
margins
be
as
competitive
as
possible.”

As
of
Friday,
Rate
had
2,187
sponsored
loan
officers
and
479
active
branches,
according
to
the

Nationwide
Multistate
Licensing
System
(NMLS).