I’ve mentioned this before, but here’s a quick refresher: a few years ago, we rescued a mutt named Opal. Not long after, she spent a few days at TLC, The Life Center. She’s now basically a car payment after we spent $16,000 to save her life. So, how does she show her gratitude? By rolling in crap. I mean crap. Dead stuff. It’s hard to describe the stench she finds. Just as I sat down to write this morning, she returned in all her glory. I think this is her third bath this week. Brutal… just brutal.
Product Spotlight: Non-QM Lending
Before we get into rates, I wanted to share a success story from this week and spotlight some newer product options we’ve added this year. Non-QM (Non-Qualified Mortgage) loans are becoming a bigger part of the lending landscape. I could write a full page on what a qualified mortgage is, but here’s the quick version:
Non-QM loan types include*:
- Bank statement loans for self-employed borrowers (as little as a 12-month history)
- Profit and loss loans, also for self-employed borrowers
- Asset-based lending (no income or debt ratio required)
- DSCR loans (Debt Service Coverage Ratio), where the rental property qualifies based on projected rents
- Loans for foreign nationals
- Non-warrantable condominiums
*This is not a commitment to lend by BCT. All loans are subject to approval.
This week, we closed a DSCR loan for a self-employed borrower, and the rate and terms were nearly identical to what he would’ve received through a traditional mortgage program. As these products continue to perform well, with default rates at or below expectations, we’re seeing more competitive pricing that closely mirrors conventional options. If you have questions about these loan types, feel free to reach out.
Market Talk: The Fed, Tariffs, and a Wait-and-See Approach
This week was a Fed meeting week, which always makes things interesting. While the market didn’t expect a short-term rate cut, this meeting included the release of the Governor’s Dot Plot, which lays out expectations for short-term rate movements in the coming months.
What we got was a mix of opinions, which isn’t surprising. Some expect an economic slowdown due to tariffs, while others believe tariffs will increase inflation. That divergence in thought is pretty common among economists. Either way, uncertainty remains, and the Fed continues with its wait-and-see approach as markets digest the long-term impact of trade policies.
Mortgage interest rates stayed relatively flat for the week and remain within the same narrow range we’ve seen for several months.
Final Thought: Keep It Light (and Clean)
Enjoy this summer-feeling weekend and try to keep your pets out of trouble (and out of the stink). As always, we’re here for any mortgage-related questions or needs.
-Steve-