GoDocs, the automation company in commercial loan document generation, recently released its “Lender's Guide to Document Challenges for Non-QM (Qualified Mortgage) Loans” paper, according to a company release. The company said the paper provides lenders with a valuable resource for navigating non-QM loans including benefits, how to maneuver, and what the future may bring.
Details on these high-performing loans and tips on how and why they can become an important part of an institution’s offerings is also outlined. As the commercial lending market continues to evolve, non-QM loans are becoming an increasingly popular offering among lenders looking to create new revenue streams, the company said.
While lenders took a hit during the pandemic, the housing shortage is driving more investors to seek out non-conventional loans to meet demand. Non-QM loans cater to this segment of the population while also providing lenders with additional income without taking on unnecessary risk.
GoDocs’ comprehensive guide to non-QM loans provides a detailed look at how they benefit both lenders and borrowers, and why these types of loans represent the future of commercial lending.
“Traditional loans adhere to rigid standards that can disqualify many people who would make perfectly good borrowers. By focusing less on financial history and more on the value of properties and their future earning potential, lenders are able to offer more flexible solutions to a wider range of people,” GoDocs CEO Steve Butler said. “When non-QM loans are paired with automated documentation solutions and other technology the process of lending is exponentially accelerated and simplified. This is essential if commercial developers and investors want to keep pace with demand.”
Non-QM loans aren’t a new offering among lenders, but they are a solution that is gaining traction as the commercial housing sector builds momentum and technology makes the loan documentation process easier than ever.