✨ Vaultedge partner with sutherland to transform the mortgage industry. Read More
Event Report

Top Sessions to attend at the 3rd Annual NON-QM FORUM

Rahul Bishnoi
Marketing Manager
3 MIN READ

IMN is excited to return with its 3rd Annual Non-QM Forum with the opportunity for key players to learn, interact and grow. This forum has been designed to focus on both the loan origination and investor perspectives diving into the current market trends, updates, and critical issues through various panel discussions hosted by industry experts. This event should be attended by: 

  • Mortgage bankers
  • Private lenders in the non-QM space
  • Warehouse lenders
  • Underwriters and arrangers
  • Legal counsel
  • Rating agencies
  • Mortgage servicers
  • Regulators

The event is lined up with some of the most informative and riveting sessions. We have compiled a list of the top ones that can’t be missed.

  1. Headwinds vs. Green Shoots: The Post-Pandemic Economy & Non-QM Market Drivers

The pandemic has caused havoc on all sections of life. The mortgage industry is slowly recovering from its aftermath. The session aims to highlight the factors that are slowing down the growth, causing negative effects on profits and revenue versus the positive aspects that are contributing to the economic recovery after the disaster. Some of the topics for discussion will include: 

  • An update on the GSE changes for jumbo and second home mortgages
  • Small business owners and gig economy workers
  • Refis: How low can they go?
  • The keys to targeting and educating different consumer demographics including minority and underserved markets
  • Home sales, prices, and competition from single-family rentals
  • High growth and inflation and it’s impact on the market
  • Impact of work from home on mortgage origination
  • Incomes and FICO scores
  1. Adapting New Processes & Tech To Make The Mortgage Process Quicker & More Efficient 

The mortgage industry has been viewed as a languid, paperwork-intensive industry but a stack of tech-driven innovations is changing this. These have capacityto not only make the experience more pleasant and efficient for the loan originators, lenders but also entirely change how borrowers buy their mortgage. Here are a few topics that the session intends to touch on:

  • What are the keys for increasing investor/market acceptance of automated underwriting?
  • Approaching regulatory/ATR considerations regarding automated underwriting, decisioning, or closing
  • How are you closing loans faster?
  • Everything “E” including e-closing, e-docs
  • Automating the bank income statement process
  1.  Underwriting, Pre-Qualification, Calculating Bank Statement Income & Ability To Pay: How Is Your Credit Box Changing As Rates Rise?

This session will deal with critical topics such as how fraud is becoming a snag for companies in their growth strategy. And how technology , such as AUS can be optimally utilized to increase an underwriter’s productivity. Some of the other topics include:

  • How useful are borrower FICO scores today in predicting loan performance success?
  • Have you voluntarily adapted anything from the CSFB Non-QM rules?
  • Reserve asset calculation
  • Underwriting delegated vs. non-delegated loans
  • What are you asking for borrowers that you believe should be sunsetted?
  • Credit ratings, income and asset standards: How are yours changing?
  1. Capital Markets/Investing in Non-QM Capital Markets & Using Warehouse Lines and Securitization

The industry experts talk about the current advance rates and share personal perspectives on how to attract new investors. The session will also include topics like investor requirements, primary steps on acquiring an AAA-rated securitization and-

  • How are you financing loans? 
  • Dealing with early pay outs and how long they need to be
  • Holding on balance sheet vs. retention length before selling whole loans or securitizing: What is the impact on financing and hedging?
  • Changes from warehouse providers
  • Hedge policy: What happened during the volatile days of the early pandemic and the results for hedgers and non-hedgers
  • Pipeline, credit, and interest rate hedging performance in a rising interest rate environment 
  • Convexity   
  • Do not hedge as a hedge policy vs. costs of active risk management
  • How do you look at modeling property values given housing shortages and its impact on credit risk?   
  1. Compliance: How Are Your Guideline Changing With The Market?

As real estate transactions have moved online,  so have scammers who hope to intercept money that's meant for down payments and funding loans. Fraud has been one of the monsters that has been raising its ugly head and the mortgage industry is combating this evil headon. The session aims to highlight the kind of measures taken to stop it. It also will talk about compliance risks and the emergence of a an automated compliance solution in the ecosystem.

  • What should an automated compliance solution have present?
  • As the space continues to grow are there more fraud attempts? What is their nature?  
  • What do asset management and investor compliance officers look for?
  • Preparing for October 1
  • How does your underwriting system ensure compliance?
  • HMDA, Fair lending, ATR/QM and CECL: What are the pain points?
  • What are the biggest compliance risks you are dealing with? What are the newest ones that you are paying attention to?
  1. Keys To Selecting Your Non-QM Loan Lender: The Broker/Correspondent Executive Panel

When a market is filled with innumerable choices, it becomes difficult to select the right Non QM Lender. This panel of experts will talk about the dilemma that ones faces while selecting a Non QM Lender along with the kind of tech tools to help expedite the process. Some of the other topics include:

  • Should you choose more than 1 Non-QM lender?
  •  What kind of tech tools should you look for?
  •  How extensive does the product line need to be?
  •  Should you go with a smaller or bigger player?
  •  New and existing client support
  •  Payout structures for you and your team
  •  Keys to a long-term relationship
  •  Choosing a QM vs. Non-QM lender
  •  Depth of product line vs. sharpshooters

As the market shifts, interest in non-QM lending from traditional lenders and brokers has increased. Non-QM also does well in a purchase market, because it serves borrowers who don’t fit into neat underwriting boxes: self-employed, professionals and gig economy workers. And their ranks are growing. According to latest numbers from the Bureau of Labor Statistics, the number of self-employed people in the U.S. is just under 10 million, a 4.6% annual increase.

There is definitely a learning curve with non-QM: the products, the underwriting and documentation requirements are all different and technology is a big part of the challenge.  The event couldn’t have come at a better time. With the rates changing, market dynamics shifting, it will be interesting and informative to hear what the Non QM industry experts have to share.

Vaultedge has been in the Non QM market for quite some time. Vaultedge AUS underwrites for multiple investors and qualifies for best fit non-QM product AUS that extracts & analyzes income data against underwriting guidelines from different investors to qualify borrowers for best non-QM product. Vaultedge uses its proven AI OCR engine to automatically extract, analyze & validate income data from different income docs - W2, bank statement, PnL, DSCR etc. 

We are elated to be a part of this much-awaited event. 

If you would like to know more about Vaultedge AUS and discover how our solution can help you, then request a 30 minute demo from us.

Rahul Bishnoi
Marketing Manager