MReport June 2022

TheMReport — News and strategies for the evolving mortgage marketplace.

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22 | M R EP O RT COVER STORY MReport had a chance to chat with some of the leaders in the non-QM space to discuss the benefits of this offering, and how catering to this new generation of borrower is proving profitable. Tom Davis serves as Chief Sales Officer of Deephaven Mortgage, charged with expand- ing the company's footprint and market share across the United States. Davis joined Deephaven in 2022 and has more than 20 years of experience helping partners with their agency and non-QM/ non-agency needs. Founded in 2012, Deephaven is a full-service, multichannel, long-term mortgage lender in the non-QM space, providing access to financing to millions of underserved customers throughout the United States. Jeff Gravelle serves as Co-Head of Production at Newrez, oversee- ing all origination activities across the company's various lending channels. His career spans more than 20 years in financial services, including leadership roles in investment management, capital markets, sales, and marketing. With a career spanning more than 25 years, Michael Isaacs, CEO of GO Mortgage fulfilled his passion of owning a mortgage company again through the purchase of GO Mortgage in November of 2021. As former President and CEO of Residential Finance Corporation (RFC), Isaacs managed all areas of business and spearheaded significant invest- ments in recruiting, training, and technology, enabling RFC to increase revenue 68% in four years. Prior to the acquisition of GO Mortgage, he served as RVP of Sales for Fairway Independent Mortgage Corporation from 2016-2021. Jeff Leinan serves as President of Plaza Home Mortgage's Wholesale Division, responsible for all aspects of the Division's origination, underwriting, and production. He joined Plaza in 2008, where he was responsible for Regional Sales Management for the East Coast, and in 2018, was promoted to EVP, driving the growth of the company's whole- sale, non-delegated, renovation, and reverse lending businesses. In 2019, Leinan established the company's National Inside Sales team to provide comprehensive service to its Mortgage Broker clients, in addition to branch office coverage from its existing footprint. He was promoted to President of the Wholesale Division in February of 2022. Neil Merritt serves as Head of Product Strategy & Development at Newrez. Having started his lending career as a Loan Officer, Merritt has a deep understanding of the industry and the impor- tance of competitive, high-quality products. His prior titles have included Chief Lending Officer, as well as SVP of Capital Markets and Product Development. He has a vast knowledge of mortgage product offerings and brings specific expertise in nonagency loan products, jumbo products, and proprietary loan programs to his role. What is the current state of the non-QM marketplace? Jeff Gravelle: The non-QM market is getting more focus these days as lenders look to expand their offerings. Non-QM loans are more complex than other loan products, so lenders must invest the time and resources to educate their sales teams and brokers. That's why it's so important for mortgage professionals to work for a company that has strong non-QM underwriting exper- tise and one that provides the educational resources necessary to navigate the challenges common to the non-QM market. Nearly 80% of our LOs and AEs have completed and passed our non- QM-specific training to ensure they're qualified to help meet the needs of non-QM borrow- ers. It is also why nontraditional borrowers should choose a lender that has experience in this field and the ability to deliver with customer satisfaction. Michael Isaacs: The non-QM market has not been this robust since the definition of non-QM was created by the Dodd-Frank Act in July of 2010. Non-QM loans are different from the sub- prine programs that were popular prior to the financial crisis, because they require alternative forms of income documentation rather than no income documen- tation, which pre-crisis sub-prine or non-prime loans allowed. Additionally, there are require- ments for higher down payments and higher FICOs, which many sub-prine programs did not require. "Non-QM loans are harder than other loan products, so lenders must invest the time, resources, and education into their sales teams and brokers to learn the intricacies of these products." —Neil Merritt, Head of Product Strategy & Development, Newrez

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