Michael Nierenberg and His Commitment to Demystify Loan Services and Mortgages
The conventional process of acquiring mortgage loans can be extremely rigid. This kind of challenges can make one be denied a loan even if they belong to the high-income earners bracket. For instance, a QM mortgage procedure has stringent guidelines that relate to verifying the borrower source and amount of income. Borrowers are required to provide recent pay slips. This hinders various categories of borrowers from accessing mortgages. Such borrowers include self-employed people, foreigners and those with substantial assets.
For the last four years, non-QM mortgages have emerged as a customized solution to this increasing problem. The non-QM process uses flexible underwriting rules. The capacity to repay the loan is still a major consideration in the mortgage application process. Consumers should, therefore, understand that every loan is subject to the ability to pay rule. The non-qm loan has a different approach to getting there. For one to qualify for a QM loan, he or she has to provide alternative supporting documents such as financial statements as opposed to W2s.
Mortgage services and loan origination enterprises have changed greatly since the financial challenge that happened in two thousand and seven. One result of the financial crisis was that banks significantly withdrew from the mortgage market. New entities like New Residential have taken up the role and done it even better. They seek to reduce the reliance on QM loans that follow strict application and repayment procedures. Such restrictive procedures are enforced by government-sponsored enterprises and federal housing agencies. Non-bank mortgages approach delinquent loans differently. They are proponents of loan modifications strategies as opposed to forced assets sales.
Michael Nierenberg is a pioneer in such customized mortgages and loans. He is the Chairman, President and Chief Executive of New Investment Corporation. He was appointed as the board chairman in mid-2016 and chief executive in 2013. Previously Michael Nierenberg was serving as the managing director and head of Global Mortgages and Securitized products at Bank of America, Merrill Lynch. He also had a stint at JP Morgan in the management committee and also in charge of global securitized products. Michael Nierenberg has served as a leader in various organization and capacity. His vast knowledge and experience make him want to make a change in the financial sector.