September 5, 2019

NDM News

Day 3 of the Non-QM upgrade! I’m already hearing a lot of success stories.

Page 2 of the Non-Agency rate sheet has our most popular program, Income Direct, for borrowers with non-traditional income that qualify using 12 month of bank statements. While the idea behind the program has not changed, pay attention to several important guideline and pricing updates that will put us ahead of the competition.

  • Removed the 24 month bank statements, VOE, and 2 month bank statement options. Everything is now priced to 12 month bank statements.
  • 50% expense factor regardless of industry, workers, and most importantly use of an expense factor is allowed on all LTVs.
  • Price improved for 90% LTV and removed the 12 month bank statement adjustment.
  • Rate sheet uses aggressive 30 year fixed as the base price, however 5/1 and 7/1 ARMs are still available at an even better price.
  • Investment properties are now allowed.  Pricing is competitive without a prepay, and max price does not require a prepay.

Bank statement qualification will no longer require 24 months of statements and a P&L to achieve the best price. This combination of pricing and guidelines will make Income Direct even more popular than it already is.

Let’s go lock some Non-QM!!!  (Once your loan is approved.)

Market News

Stocks opened higher on hopes for trade progress after the U.S. and China said they would hold talks in October. Officials from both countries will work together over the next few weeks to lay the groundwork for the meeting in October. China said it hopes for “substantive progress” during the talks. The introduction of new tariffs by the U.S on China has forced China to retaliate. Items such as American soybeans and some U.S. auto parts have been impacted. Additionally, China has let its currency depreciate to help alleviate the damage of the tariffs.

Bond prices are down, and the 10-Year Treasury is yielding 1.53%. The Federal Reserve is preparing to cut interest rates at their next policy meeting, likely by a quarter-percentage point, as trade continues to dampen outlook for the economy. ADP data showed U.S. companies added the most jobs in four months, suggesting the labor market remains healthy despite a slowdown in manufacturing and global weakness. A separate Labor Department report Thursday show filing for unemployment benefits were little changed last week and near the lowest level since 1969.


Josh Pappert – VP, Capital Markets
Nations Direct Mortgage