“Early on, we identified a need in the market for underserved borrowers who did not qualify for traditional agency or jumbo guidelines, or who preferred the convenience of a streamlined product. That need exists today more than ever,” said David Adamo, CEO of Luxury Mortgage.
He added that many non-QM lenders either exited the business or defaulted on commitments to their customers during the pandemic, but Luxury Mortgage was able to continue delivering on their commitments to serving such an important segment of the market.
“With many non-QM borrowers being self-employed, they are responsible for much of the economic growth and employment that this country desperately needs,” added Adamo. “They are the backbone of our country and deserve to experience the benefits of homeownership and affordability.”
Due to the need in the market, Luxury Mortgage released their new Simple Access non-QM guideline updates on its wholesale and correspondent channels. Their Simple Access-Investor Cash Flow program requires no employment verification, with qualification based solely on the rental income of the property. It was designed for the professional investor who historically purchased investment properties with all cash or double-digit interest rates from hard money private lenders. The borrower best suited for this offering is well-qualified and typically have substantial equity and investment into the subject property.
While COVID-19 had caused the primary and secondary market to freeze up in mid-March, Adamo said by May, things started heating up again.
“The rates and guidelines have been steadily improving over the past few months and overall, our Simple Access non-QM product is now very similar to what existed pre-COVID.”
Luxury Mortgage has weathered the storm of COVID-19 and continues to be a recognized leader in the non-QM and jumbo mortgage markets. With deep experience originating non-agency loans for well qualified borrowers, they have the flexibility to be extremely innovative in the design of their programs and guidelines.