Posted by MeridianLink | June 8, 2022

Non-QM Forum Recap: Adapting New Processes & Tech to Close Loans Faster

As mortgage lenders continue to adjust to today’s market, non-QM loans and other niche product offerings remain top of mind.

At the recent third annual Non-QM Forum, hosted by Information Management Network in Dana Point, California, topics were centered around current market drivers, a survey of today’s products, and the future of non-QM lending. In a session titled “Adapting New Processes & Tech to Make the Mortgage Process Quicker & More Efficient,” David Weiczorek, Director of Product Management for MeridianLink Mortgage loan origination software, joined other panelists to discuss the importance of lenders having flexible technology solutions in place that complement both their borrowers, staff, and processes.

“Non-QM lending is less of a commodity as compared to agency lending and so, when it comes to technology, what lenders need most is flexibility. Because there is no one technology that is going to be all things to all people, lenders need a flexible solution unique to the programs and guidelines they have created – a technology that is easy to connect and assemble to a best-of-breed tech stack,” Weiczorek shared.

Empowering People Through the Process

The panelists also addressed the wider topic of the proper way for lenders to implement technology with their staff, including processors and underwriters. Having the right tech stack in place is only the beginning. The bigger hurdle for lenders can often be implementing the solution and having employees buy-in.

Lenders must frame the introduction of technology to automate processes in a way that empowers staff to do their job better but not as a total replacement. In this way, there will be a better reception from staff in the implementation of the technology.

Additionally, the panel noted it is important for lenders to ensure there is the right amount of ongoing support and training provided to staff to bring them up to speed in the actual use of the technology.

The Right Partner Is Key

As the non-QM market is continuing to draw attention with rates on the rise, more lenders are adding these loans to their product mix. But the question is: are they prepared to compete in this sector?

To compete, lenders must team up with the right service provider. Although there are several technological solutions to help lenders automate traditional mortgage processing, few also focus on non-QM loans. By nature, non-QM loans are diverse, so lenders need partners that offer the specialized technology needed to streamline the tasks associated with originating and processing these loans.

Weiczorek relates, “If you look at your loan origination software (LOS) as the foundation, just like with a home if there is a problem with your foundation, you are in real trouble. If your home’s foundation is solid, however, it becomes easier to upgrade features or add new rooms, for example. Similarly with technology, if you have a reliable solution that is flexible with the ability to integrate other third-party vendor solutions as needed, it becomes easier to modify your tech stack for efficiently closing loans, including non-QM.”

Is now the right time for you to consider evaluating your tech stack? Learn more about what to look for here.

You may also be interested in, “Have You Considered Non-QM Lending Yet?”

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