Jeff Taylor, Co-Founder & Managing Director at Mphasis Digital Risk, was recently quoted in the December issue of the MReport Magazine.
Mr. Taylor projects that housing supply will remain tight in 2019. Commenting on the Innovation in Lending, Jeff says “We’re seeing a lot more non-QM products and similar types of loans coming to the market. People are looking to expand their credit box and see what types of different loans they can put in the marketplace and what the appetite might be from the investor base. The higher the interest rate, the higher the payment, the more risk tolerance people will be willing to take from a nonQM type loan, and the expansion of these mortgage products into different areas.”
Inventory may also affect the purchase loan market, especially since “the refinance market has dropped off significantly and the purchase market is much more of a focus for all lenders,” states Jeff.
In such a case, lenders who invest in technology and streamline operations are likely to see the best opportunities come their way in 2019. “The biggest trends for me are how all lenders, whether they’re a bank or an independent mortgage lender, are having to actually successfully utilize technology in order to strengthen their reach to the customer base,” Taylor said.
To read the entire MReport article, download the magazine here – see pages 22 and 23.