Since the Crash of '07-'08 and post the introduction of  the highly restrictive Dodd-Frank rules , alternative lending has finally begun to move forward over the past 3 years.  "A" paper Fannie-Freddie, FHA and traditional jumbo lenders are heavily constrained by the new rules and operate in very narrow lanes. These rules have made it next to impossible to obtain loans for alternative income type borrowers, and this is especially true of the self-employed.

Fortunately, other entities such as Private Equity firms and aggregations of groups of wealthy investors have begun gapping  the space where the restrictive Dodd-Frank rules leave off.  Positioned between "Hard Money" and "A" paper, these lenders are writing loans with good old-fashioned common sense reviews of a borrowers ability to repay.   Wall Street has also taken notice and guideline expansion continues as more players herd into the space.  This surge will lead to more competition and further gains for borrowers in the form of reductions in rates and the continued widening of program parameters. We DO NOT FORESEE a return to the reckless era of pre-crash underwriting at high loan-to-values, but opportunities abound where few existed just a handful of years ago.

Stated income,  bank statement,  asset depletion,  foreign national, DCR programs  and even low or no FICO programs are reviewed using sound criteria to establish a borrowers willingness and ability to repay their obligations. Surprisingly, at reduced LTV's these programs also allow large single loan amounts and even credit lines upwards of $50 - $100 million for the right borrowers with the right properties in healthy real estate markets nationwide. 

Unlike traditional "A" paper mortgage brokers, this alternative market type financing is what we do all day, every day

For the most part today,  "A" paper loan shopping for a traditional mortgage loan is driven by boring pricing engine technology.  Brokers input a borrowers loan particulars and pricing software spits out the best priced lender and the broker simply submits to one of the best priced on the list.

Unlike this "A" paper space, the Alternative mortgage market is still highly fragmented and lacks consolidation or any efficient sorting mechanism.

Right fitting a program is compounded by the relentless parade of new product issuance, almost weekly, as competitors search for the edge that will get them more business.  THE BOTTOM LINE IS THIS IS A HIGHLY SPECIALIZED AND SUBJECTIVE MICRO-MARKET and to play successfully requires constant vigilance.  

At BrokerInfo we are frequently approached and always monitoring new product issuance.  We foster and maintain a significant number of unique relationships with a wide variety of institutions and vendors. We are able to get priority treatment as we can nurture these relationships by sending issuers more than a loan here and there...i.e. we specialize in this and the lenders take notice.