Non-QM (Non-Qualified Mortgage) lending plays a vital role in today’s mortgage industry by providing options for creditworthy borrowers who don’t meet traditional lending criteria. Gregory Tsang is the CEO and co-founder of eRESI, a Non-QM correspondent whole loan investor offering Delegated and Non-Delegated options. Established in 2019 with President Tim Wang, eRESI was designed to provide stable, long-term capital to support the growing Non-QM market. Gregory’s deep understanding of the mortgage industry’s complexities led to the creation of a more stable and scalable solution for this underserved market segment.
Key Decisions and Strategies for eRESI’s Growth
HousingWire: What key decisions or strategies do you believe contributed most to eRESI’s substantial growth?
Gregory Tsang: Three key decisions have been instrumental in eRESI’s trajectory.
The first strategy involved partnering with the right capital partners, such as Global Atlantic and KKR, which provided access to long-term capital. This partnership strengthened the foundation of eRESI and enhanced its platform to serve clients effectively. Additionally, strategic relationships with other capital partners and financial institutions were developed to expand product offerings and ensure competitive pricing for clients.
The second decision focused on building an internal, proprietary loan tech platform tailored to eRESI’s needs as a correspondent lender. This cloud-based platform streamlines interactions with originators, due diligence vendors, servicers, and custodians, enhancing communication both internally and externally.
The third pivotal decision was assembling a team of seasoned professionals who embody the company’s values and culture. This deliberate approach to hiring has been fundamental to eRESI’s success, creating a cohesive unit with deep expertise and a drive to innovate.
Best Practices and Company Culture
HW: Are your best practices something you designed from the ground up? Or did you have a foundation that you brought in from your previous experience?
GT: Best practices at eRESI are rooted in the team’s culture and individual personalities. A commitment to excellence and client-focused solutions drives the company’s approach, minimizing risk and ensuring quality. Past experiences and lessons learned have shaped eRESI’s best practices, emphasizing high standards and a strong foundation built over time.
Setting eRESI Apart in the Market
HW: Your space is something that’s becoming increasingly more competitive. What sets eRESI apart from other providers in the market?
GT: eRESI’s access to long-term capital and dedication to client service distinguish it in the market. The company’s hands-on approach, commitment to transparency, and technology platform that enhances the loan process set eRESI apart as a reliable and innovative partner for clients.
Future Growth and Innovation
HW: Looking down the road, what are you most excited about for eRESI and for the industry at large?
GT: eRESI is excited about the industry’s adoption of flexible technology and new product lines. Advancements in credit requirements, valuation processes, and qualification tools offer opportunities for growth and efficiency. As the industry prepares for potential rate changes, eRESI’s focus on innovation, service-first mentality, and strong pricing positions it for continued growth and success.
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