In this high-energy MikeDrop episode, The MikedUp Show hosts Mike Kelleher and Michael Zau welcome Nick Pabarcus, a 25-year mortgage veteran and Director of Sales at Logan Finance. Known for his leadership roles at loanDepot, Stearns Lending, and Countrywide, Nick brings his extensive experience to the table to discuss the rising importance of Non-QM lending in today’s market.
Nick kicks off the conversation by drawing a fascinating comparison between the mortgage industry and Formula 1 racing. He likens loan officers to top-tier F1 drivers like Verstappen and Hamilton, who need to navigate complex tracks with skill and precision. Just as F1 tracks require mastery, so too does the mortgage landscape, especially in the Non-QM space, where opportunities are vast but challenging.
Nick dives into the world of Non-QM loans, which he calls the "Monaco" of mortgage racetracks. These loans, designed for self-employed borrowers and gig economy workers, offer loan officers the chance to earn higher profits due to the intricacies involved in underwriting and pricing. He explains how Non-QM loans are seeing a surge in demand, with Wall Street backing them due to their attractive securitization potential. Nick emphasizes that understanding credit boxes and price transparency is crucial for loan officers who want to excel in this space.
One of the standout moments in this MikeDrop episode is Nick's discussion of Logan Finance’s AI-powered portal, which simplifies the process of reviewing bank statements for Non-QM loans. This tool allows loan officers to quickly and accurately assess a borrower's financials, cutting down on time and potential errors. It's innovations like these that are shaping the future of mortgage lending, making it easier for loan officers to serve their clients effectively.
Nick also provides practical tips for loan officers on how to address common borrower objections, particularly around fees and interest rates. He reminds us that it’s not about what a borrower pays upfront, but what they keep in the long run. This shift in perspective can help loan officers better communicate the value of Non-QM loans to their clients.
As the episode wraps up, Nick offers his vision for the future of the mortgage industry, particularly the growing role of Non-QM products in serving underserved markets. He encourages loan officers to stay ahead of the curve by educating themselves through industry resources like the California Mortgage Bankers Association and the National MBA.
This MikeDrop episode is a quick yet powerful recap of Nick Pabarcus’s full interview, packed with insights and advice for mortgage professionals looking to tap into the lucrative Non-QM market.
