New non-QM platform launched for lenders who want to outsource
PENNSYLVANIA, UNITED STATES — Alternative lender I Fund Cities announced a strategic partnership with business process outsourcing (BPO) firm RARE Consulting Solutions to launch an innovative platform tailored for non-qualified mortgage (non-QM) and private lenders.
This collaboration aims to simplify and expedite the lending process for borrowers who do not meet the criteria for conventional mortgages, such as LLCs, partnerships, and self-employed individuals.
Addressing the complexities of non-QM lending
Non-QM loans are essential for facilitating property ownership and investment opportunities for borrowers with varied financial profiles. However, the lending process can be intricate due to the diverse income types and credit histories involved.
The new platform from I Fund Cities and RARE Consulting Solutions leverages automated systems to replicate processes typically used in qualified mortgage (QM) lending while maintaining the flexibility needed for non-QM borrowers.
“The platform is developed to specifically address the ever-evolving demands of the non-QM and private lending markets,” said Bryan Ziegenfuse, manager at I Fund Cities.
“[It] not only speeds up the loan qualification and approval processes but also enhances the ability to analyze a variety of income types and consider credit events not typically seen in QM lending.”
Timing amidst tightened lending standards
The launch of this platform comes at a critical time when many banks are tightening their lending standards, particularly for non-QM loans.
A recent Federal Reserve survey indicated that while lending criteria for loans eligible for purchase by Fannie Mae and Freddie Mac remain mostly unchanged, banks are becoming more conservative with their non-QM lending.
This tightening of standards presents an opportunity for non-QM lenders. Keith Lind, CEO of non-QM lender Acra Lending, emphasized the potential for growth in this sector, stating that lenders with the right tools can navigate the current “choppy” environment and thrive.
Lind views non-QM as a viable alternative when the market for government-backed loans weakens, urging brokers to connect with non-QM originators to learn more about these products.
Future prospects for non-QM lending
The non-QM sector has shown resilience and potential for growth, particularly as traditional lending becomes more restrictive.
The new platform by I Fund Cities and RARE Consulting Solutions is poised to play a significant role in this landscape, offering streamlined, efficient, and flexible solutions to meet the needs of non-QM borrowers.
“This kind of innovation is crucial for navigating the complexities of the non-QM lending market and for reshaping the future of mortgage lending with a stronger sense of purpose and efficiency,” Ziegenfuse added.
