In the competitive landscape of private lending, differentiating yourself is paramount. As the market evolves and borrowers’ needs become more diverse, it becomes increasingly important for lenders to offer unique products and exceptional service. Deephaven Mortgage, a Charlotte-based lender and mortgage aggregator with a wealth of experience spanning more than a decade, has embraced this ethos, establishing itself as a trusted choice for brokers and lenders nationwide.

Deephaven has always been a frontrunner in the industry. Long before millions of Americans bid farewell to the 9-to-5 life during the Great Resignation of 2021, the firm had already begun paving the way for the nonconformists – the self-employed individuals who steered clear of traditional W-2-required, 40-hour workweek-jobs. 

“We’ve always believed there was an underserved segment of borrowers in the US that needed funding for the purchase of homes,” says Dank Pinckney, Deephaven’s General Counsel and Chief Compliance Officer. “We are largely a purchase-money shop. We have designed these products to support that component of the population. There are so many individuals out there who cannot meet the prescriptive underwriting requirements to qualify for the agency and government programs.”

Pinckney came to Deephaven Mortgage in 2015, where he works alongside Chairman Matt Nichols, President and CEO John Keratsis, CFO Mike Witt, and COO Aaron Drago, among others. They collectively have decades of experience in the private capital mortgage arena, enabling Deephaven to offer unique deliverables in a highly competitive space.

In industry terms, Deephaven is primarily considered to be a non-QM mortgage lender and aggregator. Though the company may fit that traditional definition, the team prefers to see itself as a pro-borrower mortgage lender that pushes beyond the institutional hallmarks of what constitutes traditional mortgage products, serving more than 1,500 independent mortgage brokers and 350 lenders across the country.

As of March 2023, 15% of all workers in the US, which amounts to about 20.2 million people, listed themselves as independent contractors. Factor in the number of people who have a so-called ‘side hustle’ – an endeavor pursued alongside full-time employment that similarly deviates from the traditional W-2 structure – and it becomes abundantly clear how quickly Deephaven’s market is growing. 

Tapping into a unique subset of borrowers requires a different approach than the traditional lender. “We do a lot of underwriting based on bank statements to establish income,” Pinckney says. “We find them to be very accurate in providing a detailed picture of income when we’re assessing how much can be borrowed and in establishing the borrower’s ability to repay the loan.” The company also uses other assets such as stock accounts and individual retirement accounts (IRAs) to qualify borrowers.

Deephaven is also a trusted partner in providing business purpose loans for investors acquiring single family rental homes. The industry has continued to grow as rental homes have become a more popular option for many consumers. Deephaven was a pioneer of these lending products to property investors and continues to be an industry leader in this space. 

Deephaven also recognizes the benefit of offering varying degrees of client support in addition to loan origination. “We have tools on our website to help clients and potential clients understand how the loans are manufactured and underwritten,” Pinckney says. “They aren’t credit decision tools, but more hypothetical scenario tools to help originators understand our loan programs and how to qualify.”

Services like these open the door for brokers and lenders who may not have the time or resources to become experts on Deephaven’s loan products, further differentiating the company from its competition. 

A Deephaven History Lesson

Two years after it was founded, Deephaven was purchased by Varde Partners, a global alternative investment firm specializing in credit and credit-based asset management. In 2019, Deephaven was acquired by Pretium Partners, a firm specializing in mortgage credit with verticals in corporate credit, mortgage finance, and residential real estate.

Pinckney says the presence of Pretium has been instrumental in helping the company continue to grow and to help manage volatility in the mortgage markets.

“2022 obviously wasn’t a growth year for the overall market,” Pinckney says. “But we have the expertise and experience to navigate a number of different market scenarios and stay out in front of the rate increases better than most.”

The Road Ahead

Pinckney acknowledges Deephaven’s positive outlook for the immediate future while also emphasizing their awareness of how quickly the situation can change.

“The first half of 2023 has stabilized in most market segments, but we know that trying to predict the future is not a productive exercise,” Pinckney says.

“We’re very optimistic for the longer term because there is still tremendous demand for housing, higher interest rates notwithstanding. To someone going in and out of the market, it can look intimidating, but we are focused on the long run. We’ve been at it for a while now and over the long haul, we know that the underlying fundamentals will continue to support growth.”