The Non-QM lending sector is not for those seeking a smooth sail. But as Gregory Meola points out, it’s all about strategic adaptation.

In a recent episode of MPA TV, Meola, managing director and head of business development and strategy at Acra Lending, shifted the spotlight on artificial intelligence. He revealed how Acra is leveraging technology to not only weather the current market challenges but also stay ahead of the curve.

“We’re really taking a strategic approach to be more technologically and AI advanced, to get ahead and do more predictive modeling, be able to be more efficient and provide a great customer’s experience through these rocky times,” Meola said. “So now that we’ve kind of settled through the rate craze wave, we’re now able to focus on some strategic initiatives that are definitely focused in that technology and AI space. And that’s really where we’re going in the future. A lot of success has come from some of these developments on our fulfillment side of the house, which will eventually translate into technological advances.”

With innovations like OpenAI’s ChatGPT and other AI-driven technologies, the market is buzzing with potential. However, the non-QM space presents unique challenges, according to Meola.

“The difference in the non-QM space is it’s a little bit more manual,” he said. “There are some things that we have to do a little bit differently. So some of the technology out there is great, and we’re utilizing a lot of that technology for decision automation, income automation pieces, and parts of the mortgage transaction that are relevant in both A-paper and non-QM lending.

“Where we’re seeing where we have to make some pivots are those areas which do not overlay within A-paper transaction. And we’re working with a couple of mortgage technology firms to develop our own technology that’s going to pick up the gaps that we’re not seeing fulfilled by off-the-shelf, A-paper lending technology, and that’s really what we’ve been working on for the most part of 2023.”

Source: Acra Lending’s 2023 Strategy: AI and Non-QM (mpamag.com)