Despite the lack of liquidity in the non-QM market during COVID-19, LSM said it continued to provide financing for non-agency borrowers amid the pandemic with a limited product set.
“We were one of the first to provide financing back in 2013. We continue to be committed to the non-QM space,” said Rabi Aziz, CEO of LSM. “Things have changed, that’s for sure. The number of loans in forbearance, companies stuck with old product, and challenges related to warehouse financing will plague the space for a while. To us, it’s more important than ever to help fill that void.”
Last week, the company brought back many of its original programs and expanded all of its offerings, including LTV’s to 85%, DSCR LTV’s to 80%, FICO’s down to 640, and loan amounts up to $3 million. LSM released the expanded offering through its wholesale, correspondent, and retail channels.
“This crisis was a virus. It had nothing to do with credit or performance of the non-QM products. The government jumped in and propped up agency products but left the non-agency space to fend for itself. We hope by expanding so early after the crisis that others will follow,” LSM President Serene Vernon said.