Here's what brokers and lenders should be prioritizing amid the current chaos
It’s no secret that mortgage brokers, lenders and borrowers alike are facing significant market volatility in the opening months of 2025 as uncertainty continues to mount about the direction of the US economy amid a global trade war.
That’s equally the case in the non-QM space, which – despite growing in prominence in recent years – is not immune to the challenges of the current market.
But lenders are remaining resilient, and one executive whose company lends in the non-QM market told Mortgage Professional America making the lending process as easy as possible for brokers and borrowers is one of the most important factors of finding success at present.
John Hamel (pictured top), president of OCMBC, said that had been among the key factors behind a solid month for his company.
“We want to be an easier partner to deal with,” he said. “A lot of that is really behind the scenes in our effort to automate all of our processes. We need to be an easier counterpart, allow the broker and lenders to focus their efforts on the ultimate borrower, and have us be as silent a partner as we can be.”
Part of that process is making the document submission process as easy as possible and making credit decisions as logical as possible.
“We want to allow them to submit and efficiently process through and spit out a funded loan as quickly as possible, as predictably as possible,” Hamel said. “Predictable and repeatable credit decisions are an absolute must. They’re complicated products, and a lot of the newer entrants really don’t have the staff to understand how to efficiently and predictably underwrite these products.”
It's been a turbulent few weeks in the mortgage market. Mortgage rates have remained elevated after tariffs were announced at the beginning of April. For mortgage lenders, brokers, and customers, it feels like a never-ending series of twists and turns over just the last month.
Hamel, the former chief capital markets officer with the OCMBC, stresses that brokers and lenders must consider risk management when navigating that unpredictability.
“It feels like every week, we get a tailwind, then we get headwind, crosswind,” Hamel said. “I think as an industry, we just need to remain vigilant and have a very attentive focus on risk, and that is multifaceted. What kind of credit risk are we truly taking, and what is the pipeline risk? I think pipeline risk management, as the old ex-cap markets guy now in a different role, that's still my strong right hand.
“We all need to be cautious not to assume conditions will continue improving indefinitely. Sometimes it feels like we’ve turned a corner, and then the door slams shut again. That’s why vigilance and proactive risk management remain essential.”
Leadership change leads to strong performance
Hamel took over as company president on February 2. Over the last three months, Hamel said it has been an adjustment for him, but it’s been a good opportunity to rework some processes at OCMBC.
“The words I’ve used repeatedly in recent weeks are ‘energizing’ and ‘rewarding,’” he said. “We’ve built a platform that’s grown to nearly 700 people over the last three years, and the depth and talent of the team have truly delivered meaningful results.”
Any change in leadership provides an opportunity to reevaluate how a company does business. Hamel said OCMBC has used it as a chance to rework some things to make things easier for their employees, brokers, and lenders.
“Nothing is an easy transition, and change is always scary,” Hamel said. “But I think what I came to realize just in the first few weeks, and it's proven itself more and more over the last 12 weeks, is that people transition from a viewpoint of change being scary, to a vantage point of change being a point of progress and additional growth.
“It’s the ability to focus on what's most important. We can reposition how we think about growing the business, and how we think about becoming a better partner.”
Hamel said OCMBC posted its biggest ever non-QM funding month in its history in April.
“It was the largest overall funding month across all sales divisions that we’ve had since 2021, which was obviously COVID-induced,” Hamel said.
“For us to produce just under $750 million last month is a terrific growth accomplishment and a real testament to the team pulling together, a lot of process improvement and automation, and a large amount of drive and empowerment for people to push forward and optimize the team we have.”
The headwinds and crosswinds never end
Hamel is approaching the months ahead calmly. “The headwinds and crosswinds will always be present,” he said. “Rate volatility is a daily challenge and hopefully, it abates some.
“I think on a go-forward basis, we all need to be paying attention to economic market fundamentals and property valuations. There are a lot of contributing factors to each of those, and very few of which we can control.”
Sam Williamson, senior economist at First American, believes lifestyle reasons combined with surging housing equity will bring people into the market despite other factors.https://t.co/mjseaSDIZ0
— Mortgage Professional America Magazine (@MPAMagazineUS) April 30, 2025
It’s important, he added, to make sure the industry doesn’t repeat the mistakes that caused the housing crisis of 2008. Hamel fears that as some lenders start seeing lending volume reductions, they could be tempted to make risky loans.
“We must have a rigorous focus on credit quality and not do what this industry has done in times of volume reductions, where credit policy lapses and expands too dramatically,” Hamel said. “I feel like we're in a terrific spot there right now. But, as competitors lose volume, that does tend to happen.”
Another significant talking point has been developments at the Consumer Financial Protection Bureau (CFPB), where up to 90% of the workforce may be terminated. A federal judge has held up those terminations for now, but if the CFPB does get gutted, it could also affect mortgage regulation enforcement.
“Regarding the CFPB changes, whether we call it a reduction or elimination, we’re hearing a lot from competitors and loan buyers,” Hamel said. “We’re considering what benefits might exist, but betting your future on regulatory rollbacks and pushing the boundaries of credit is not a strategy we support in this market.
“We can’t afford to be tone-deaf to potential regulatory changes, but relying on reduced regulatory oversight and enforcement is absolutely the wrong approach.”
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