Tap into a growing market share of underserved borrowers with Newrez’s smart series – NMP


“In 2021, there were at least 59 million gig workers in the United States,” according to statistics compiled by Zippia.

Although this number may seem insignificant, it is misleading; these 59 million gig workers represent one-third of the entire American workforce. The way we work is changing, and so is the way we live – and we, as part of the housing process, need to stay up to date.

Introducing… Newrez’s Smart Series Loans including SmartSelf, SmartVest and SmartEdge.

With Non-Qualified Mortgages, and in particular the Smart Series, borrowers have access to financing solutions that might make more sense for their finances – they are the answer to our changing environment when it comes to helping customers to buy houses and properties.

So what types of borrowers could benefit from Smart Series?

  • Independent borrowers.
  • Self-employed, gig economy workers.
  • Real estate investors.
  • High net worth borrowers.
  • Buyers on commission.
  • Business owners.
  • Homebuyers with investments, trust funds, significant assets or low reportable income.
  • Borrowers with high debt ratios.
  • Homebuyers with less than perfect credit.

As customers and their situations come in all financial states and sizes, let’s take a look at some hypothetical cases where Smart Series Loans could bridge the difference between customers having access to loans or not.

Newrez SmartSelf: a mortgage for self-employed borrowers

Andrew is a full-time worker who lives in Dallas, Texas. He’s enjoying the newfound freedom he’s found, having left a traditional nine-to-five career after ten years as an accounts receivable clerk. He now splits his time between a few different apps – driving for a rideshare app, playing personal shopper and working as a creative writing freelancer. With this life change, Andrew also wants to buy a two-bedroom house for his family and move out of his current expensive apartment.

What are his chances?

As a non-QM (non-qualified mortgage) borrower, Andrew clearly won’t be able to apply for many traditional loan programs without W2 income. A non-QM path can open up his opportunities – he can use his bank statements and 1099s as part of alternative documentation, stagger his loan repayments with his income using flexible terms, and already arrive with the understanding that his debt-income ratios are temporarily higher as he becomes a full-time worker and a freelancer. Yes; getting a loan is always possible.

Benefits of SmartSelf loans include:

  • Alternative documentation is permitted.
  • Credit requirements are less stringent.
  • Flexible terms such as interest only payments.
  • Higher debt ratios are permitted.
  • Purchase, refinance and withdrawal options remain available.

Newrez SmartEdge: for borrowers who do not meet the Jumbo guidelines

To be honest, Vanessa from Nashville, Tennessee has had a tough few months. In January, she was in a car accident where she was fortunately not injured, but her car was destroyed, which forced her to withdraw a small advance from a credit card from a chain store to pay a deposit for a new car. In March, she needed an emergency root canal, for which she opened a new credit card account, and in April, her job cut her hours in half. While she’s doing this, a few payments on those accounts had to slip into collections to pay her rent, so her credit now has two recent overdue payments/collections alongside the new auto loan and the credit account.

She couldn’t qualify for a mortgage now, could she? Well, not necessarily.

Of course, Vanessa will have more success with non-QM (non-qualified mortgage) programs – in this case, the SmartEdge program would be beneficial, as the program offers competitive financing to borrowers who are just outside the traditional scope in due to a recent loan. activity. By using SmartEdge, Vanessa may be able to qualify given other offers discussed with a loan officer.

SmartEdge has its advantages, like SmartSelf:

  • Alternative documentation is permitted.
  • Credit requirements are less stringent.
  • Flexible terms such as interest only payments.
  • Higher debt ratios are permitted.
  • Purchase, refinance and withdrawal options remain available.

Newrez SmartVest: a dynamic investor mortgage

Scott owns a few rental properties in Phoenix, Arizona, and a company that creates investment software. His business has grown exponentially in recent years – he wants to give up his expensive landlord/tenant lease in an office building and buy a property closer to the suburbs where he and his employees live. The problem is that with the growth his business is experiencing, he doesn’t have a huge reserve of cash usually needed to buy an investment/commercial property – he needs that money for marketing and hiring new development employees.

Is this possible or has Scott programmed himself into a corner?

While in some circumstances Scott would not be considered a non-QM (unqualified mortgage), in this situation he would be. Using a SmartVest loan, non-QM loans (non-qualified mortgages) designed for investors, Scott could use the equity in his current real estate portfolio to purchase the property – additionally, if he finds additional space to rent to another business within the same building, they can use the rental proceeds to pay off their loan – and thus find it easier to qualify for the loan they seek.

Don’t forget the SmartVest benefits:

  • Allows the purchase of additional inventory from the investment portfolio.
  • Provides access to equity in a current portfolio of homes to purchase more investment properties.
  • Can use current portfolio equity to upgrade or remodel existing portfolio properties.
  • The market rent (cash flow) of the subject property can be used to qualify.

Smart L Seriesoans Make Sense: Non-QM Myth Debunked

It’s important to understand that non-MQs ​​are becoming an increasingly attractive mortgage choice for a variety of borrowers – and for good reason. One of the most common myths about non-QMs is that they are high-risk loans designed for high-risk subprime borrowers. This is not the case. Non-QM market share is growing not because there has been an increase in high-risk borrowers entering the mortgage market, but because we are responding to demand for tailored financing solutions designed for buyers with unique finances in mind.

Convinced? From there, it’s up to us, as mortgage professionals, to serve more borrowers with home loans that meet their needs and continue to pave the way for them to achieve their life dreams. home ownership.


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