Changing Times Lead To Surging Demand for Alternative Financing. Certainty is Answering the Call.
We live in a world very different from the one we knew four or five years ago, pre-pandemic. While that historic event opened our eyes to the feasibility of things like hybrid and Work-from-Home (WFH) employment situations, we’re still waiting, in some cases, for some service industries to catch up to the staggering changes. There are some unfortunate examples of that in the financial services world.
The Mortgage Origination Process is Slow To Adapt To the Rise of the “Gig Economy”
Take, for example, the explosion of the “gig economy.” More than ever, Americans are eschewing traditional W-2 jobs to start their businesses or freelance as their primary sources of income. More and more Americans are realizing significantly higher compensation when leaving their traditional “9 to 5” jobs. Others are taking in revenue in new and creative ways. It’s possible to make a fantastic living today as a YouTuber or social media influencer, even though many people still need W-2s.
It’s a common scenario-a financially stable potential borrower is eager to secure a home mortgage, only to be hindered by the system. Many lenders are still grappling with updating their risk assessment and borrower evaluation process, particularly when it comes to the self-employed or those with income from non-traditional sources. This often leaves the borrower in a frustrating situation, either unable to find a willing lender or enduring a lengthy and arduous origination process.
At Certainty, we firmly believe that the mortgage lending industry needs to adapt to the changing landscape of income sources. We are committed to leading this evolution and providing opportunities to those with non-traditional income sources.
While Loan Level Price Adjustments (LLPAs) can be a significant hurdle for those seeking conventional mortgage loans, alternative financing products offer a way forward. These products provide flexibility to the borrower and often streamline the entire process. They also open up a range of possibilities for non-traditional income borrowers who might otherwise struggle with the conventional mortgage process.
Certainty Has Become a Powerhouse in the Alternative Financing Product World
Certainty Home Lending has embraced the alternative financing world, which includes what’s commonly referred to as Non-QM products. Certainty Home Lending National Business Development & Market Growth Executive Shadi Kamran is excited about the possibilities that come with alternative finance products. He can also share several excellent examples of financially comfortable but non-traditional borrowers. Certainty has been able to help with such products, usually after those borrowers have been turned down or become fed up with the conventional process. Certainty stands out in this field in several ways, which helps us live up to our vision of making the home mortgage process affordable and accessible to any borrower. We offer one of the widest arrays of alternative financing options, including our proprietary product. We’re proud to say we have many delegated relationships with alternative finance investors and firms. We also have an extensive roster of advisors and originators with a deep understanding of the ins and outs of alternative financing. They take pride in finding and matching the right alternative financing products to the unique needs of borrowers for the best results. Maybe that’s why the Non-QM category has become our fastest-growing line of business!