MAXEX Launches Non-QM Program For Alternative Documentation Loans

Mortgage News June 28, 2023

MAXEX has introduced a fresh addition to its mortgage exchange platform by including a new non-QM option. This innovative MAXEX Non-QM loan program is being hailed as the “pioneering liquidity program for alternative documentation loans,” enabling multiple sellers to connect with multiple buyers through the MAXEX exchange. By utilizing a single contract, a unified set of guidelines, and a standardized fulfillment process, the program establishes a streamlined flow of loans for alternative documentation.

MAXEX stated in its official announcement that the demand for creditworthy borrowers with non-traditional income has been steadily increasing, despite the recent fluctuations in the mortgage industry. In today’s housing market, characterized by high costs and low inventory, there is a growing number of business owners, gig workers, and individuals with non-W2 wages who are seeking homes. MAXEX emphasized that it is crucial for lenders to effectively assess and cater to these borrowers in order to ensure long-term success. However, the lack of standardization and transparency has been a significant obstacle, limiting the widespread availability of liquidity for this expanding segment.

Furthermore, MAXEX’s exchange provides originators with the opportunity to obtain daily pricing from various buyers interested in fixed and adjustable-rate mortgage loans. Income documentation can be supported through bank statements, profit and loss (P&L) statements, and 1099s. It is anticipated that this program will be accessible to originators during the summer season.

According to Brennan Walters, MAXEX’s chief revenue officer, borrowers with non-traditional, supplemental, or hybrid income are now a significant part of the homeownership landscape. This makes lending programs that accommodate alternative documentation essential for mortgage lenders today. As MAXEX solidifies its position as the private market alternative to government-sponsored enterprises (GSEs), its mission of establishing standardization and efficiency naturally extends to lenders who cater to these creditworthy non-QM borrowers.

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