Arc Home’s new non-QM regional VP Matthew Miller (pictured) shares his thoughts on the market and where it goes from here.
Q: How many years have you been in the mortgage industry and with Arc Home?
A. I have been in the mortgage industry for nearly 20 years and have had many different responsibilities over that time including loan officer, account executive, sales manager and currently as regional vice president for non-QM at Arc Home. I joined Arc Home in April of 2021 with the opportunity to join a growing presence in the wholesale and correspondent lending space.
Q: What do you expect for the mortgage market in 2021?
A. No-one can predict with any degree of certainty what the mortgage market holds, but along with everyone else I expect rates to generally be higher by year-end. At the same time, we have also seen a tremendous amount of volatility as we figure out how the economy will unfold as COVID-19 related issues subside. I think you will see lenders narrow their focus on certain strategies they think will allow them to succeed in what is presumably going to be a higher rate, purchase-oriented environment. I believe that the non-QM marketplace is an area of real growth as we enter the second half of 2021 and build towards 2022.
Q: How is Arc Home positioned in what is expected to be a more challenging market?
A. I think Arc Home is positioned incredibly well. Providing the best customer experience is our priority and we have continued to invest in that philosophy. We think that approach leads to long-term, satisfied, and loyal wholesale and correspondent customers. Combine that with our leading position in non-QM products, which we think is a distinct advantage as the market transitions to a more purchase-oriented one, and Arc Home is positioned for success.
Q: How do you foresee non-QM evolving in 2021?
A. I view the non-QM market segment as an underserved segment of the residential lending market. Non-QM is a nuanced product that requires a significant amount of expertise to provide the proper guidance and support to brokers and correspondents, and Arc Home has a strong advantage in that regard. I anticipate that technology will continue to become a bigger part of the process, improving cycle times as well as providing more immediate transparency into loan eligibility and the decision-making process.
Q: How is Arc Home positioned to assist brokers and correspondents grow their business utilizing the non-QM product suite despite an anticipated reduction in overall originations year over year?
A. Speed and accuracy are critical in this product space and having a proprietary set of products as Arc does allows us to make decisions and fund loans rapidly. Exceptions are common for this product set and we can make decisions quickly, providing transparency to our customers and their borrowers within a very short turnaround time. Unlike most competitors in this space, we do not have to go through a third party for due diligence before funding the loan. We continue to invest in process improvement and productivity, both in our customer-facing applications as well as behind the scenes in our operations areas. All of this makes for an excellent customer experience. Combining that with competitive pricing and product eligibility, we can help brokers and correspondents make up for lower refinance volumes.