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“Some of the most common conversations that we’re having right now are in-depth, solution-oriented structuring of private mortgages,” he said. “Private mortgages are intended to be a solution, a stepping-stone in that borrower’s homeownership journey, and they’re not meant to be permanent or long-term.

“Ultimately, the reality is that qualifying has tightened a lot in the A and B spaces of the market, and privates are becoming a more viable and common solution. So more often than not with the conversations that we’re having today, it’s speaking to brokers who haven’t used privates as often.”

That involves showing brokers how to structure a deal and focus on the exit strategy, he said, with the intent of putting the client in a better situation at the end of the term than they are at the beginning.

It’s also a case of guiding brokers on how to explain the various benefits, he said, such as quick closings, flexible terms and less documentation. “All of those things go a long way when somebody’s trying to close on their property and they don’t have any other options,” he explained. “So we’re here to help, and we’re here to put more people in homes.”

Rate vs. solution: which should brokers be focusing on?

The rising-rate environment of the year to date has pushed many borrowers away from the A side, and even the B side, meaning that a higher number than ever are now contemplating private mortgage options.

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