Carrington Mortgage Services is Non-Stop Non-QM

To better serve an important segment of the mortgage market, the CMS correspondent channel is concentrating exclusively on underwriting and purchasing non-QM loans.

Carrington Mortgage Services, LLC (CMS), one of the nation’s largest privately held non-bank lenders, boasts an impressive slate of loan offerings and services direct to consumers, investors, mortgage brokers and mortgage bankers nationwide. As part of its ongoing commitment to serve an important segment of the mortgage market, the CMS correspondent channel is concentrating exclusively on underwriting and purchasing non-qualified mortgage (non-QM) loans.

“In recent years, one of the most successful loan products offered by CMS has been the non-QM, or non-agency, loan,” said Samuel Bjelac, SVP, Third Party Originations for CMS. “As the non-QM market continues to grow, we have been positioning ourselves, with expanded guidelines and competitive pricing, to capture more market share and add liquidity to the secondary marketplace.”

What is a non-QM loan?

Non-QM loans have been on the rise as lenders and investors become more comfortable with loans that do not fit into the stringent government or government-sponsored-enterprise credit boxes. These loans are an important segment of the mortgage market, helping millions of borrowers who might otherwise be excluded from homeownership. It is important to note that non-QM loans fully comply with Ability-to-Repay (ATR) requirements enacted in 2014 to protect borrowers, and follow prudent underwriting standards.

Non-QM loans are designed for homeowners with unique financial situations, such as self-employed individuals, small business owners, gig economy workers and real estate investors. These homeowners may have alternative income documentation requirements, such as bank statements or asset-based qualification; or they may simply require loans that exceed the maximum conforming loan amounts prescribed by Fannie Mae and Freddie Mac, or investment property loans that are exempt from QM requirements.

Looking to the future

As CMS refocuses its correspondent channel, non-delegated will remain the primary delivery method. However, CMS will soon be expanding to offer delegated as a delivery option for approved sellers in the coming months as market conditions permit.

CMS is the right partner for non-QM

According to Andrew Taffet, Chief Executive Officer of The Carrington Companies, CMS will utilize its underwriting strength to help its correspondent channel sellers mitigate their risk when underwriting more complicated non-QM loans. As CMS concentrates on the growing non-QM market, the company also wants its sellers to be able to take advantage of that market and its larger loan amounts. CMS believes it is the best partner for non-QM, and is focusing its expertise in the correspondent channel to help sellers succeed in this growing market.

“By streamlining our product offerings to non-QM in the correspondent channel, we can leverage our expertise in reducing risk for our sellers,” said Taffet. “Being able to manage complex loans has long been one of our core strengths. With margins tightening in the current market, one that is highly commoditized, it makes sense for us to best serve our correspondent partners by focusing our energies on building our non-QM business.”

The Carrington Companies

Carrington is a holding company whose primary businesses include asset management, mortgages and real estate transactions. Collectively, the businesses are fully integrated, and provide a broad range of real estate services encompassing nearly all aspects of single-family residential real estate transactions in the United States. To read more visit: www.carringtonhc.com.

Through its collective associates made up of Carrington leaders and employees, the company’s nonprofit organization, Carrington Charitable Foundation, contributes to the community through causes that reflect the interests of Carrington Associates. For more information about Carrington Charitable Foundation, and the organizations and programs it supports through specific fundraising efforts, please visit: carringtoncf.org.

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As part of its ongoing commitment to serve an important segment of the mortgage market, the Carrington Mortgage Services correspondent channel is concentrating exclusively on underwriting and purchasing non-qualified mortgage (non-QM) loans.