Residential Lending in a No-Doc Market
Yosef Langsam of Capital Plus
Mortgage rates have climbed faster than many borrowers’ income.
“The income doesn’t run so fast as the mortgage rate runs,” said Yosef Langsam of Capital Plus at OJBA — a simple way of describing the pressure many residential buyers and investors are facing.
As rates have risen, the types of loans borrowers rely on have shifted. “Basically, most of the loans today are no-docs,” he explained. Instead of traditional income verification, lenders may look at bank statements or the rental income a property brings in. In some cases, even if that income covers only three-quarters of the mortgage payment, the deal can still move forward.
“These are things that are coming up more and more,” Yosef said. “Last year was still a new thing. This year it’s like the main thing.”
Located in Brooklyn, Capital Plus is a registered mortgage broker licensed across multiple states including New York, New Jersey, Pennsylvania, and Florida. The firm works with homeowners and investors on purchases and refinances, connecting borrowers with lenders whose programs fit today’s documentation requirements.
Capital Plus has returned to OJBA for several years. Yosef mentioned a client he met at the show three or four years ago — someone he’s only ever spoken with by phone since that first meeting. At the time of the show, he was working on two mortgages with that client, both on the smaller side, though previous mortgages between them have approached a million dollars. “This show is a real business producer,” he said.
Yosef Langsam explains how residential lending has shifted as no-documentation loans become more common.
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