Loan Originators Push Non-QM Loans as Rates Stay High Through 2028
Updated
Updated · National Mortgage Professional · Aug 19
Loan Originators Push Non-QM Loans as Rates Stay High Through 2028
3 articles · Updated · National Mortgage Professional · Aug 19
Summary
High mortgage rates and home prices are forcing originators to act more like advisers, using market data and housing history to explain why many borrowers may not see meaningful rate relief before 2028.
John Wise of Newfi Wholesale said a sharp rate drop would likely require economic trauma, so originators should help buyers weigh long-term homeownership prospects instead of waiting for a cheaper market.
Bank statement loans and second liens were highlighted as practical fixes: bank statement products help self-employed borrowers qualify, while second liens let owners tap equity without refinancing ultra-low first mortgages.
DSCR loans offer investors easier qualification and sometimes lower rates with prepayment penalties, but loans below a 1.0 coverage ratio can leave borrowers funding monthly shortfalls if rents weaken.
Tim Solntsev said deeper expertise in DSCR structures—not just credit scores—can help originators expand investor business in a market where many first-time buyers are priced out and remain renters.