Category: Non-QM News

It’s time to take a look at the top non-QM lenders in 2021, the most recent year available. It has been a topsy-turvy few years in the mortgage industry, especially for non-QM lending. The big increase in mortgage rates from the start of 2022 onward, coupled with COVID-19-related disruptions, made things difficult for all mortgage… Continue reading Top Non-QM Lenders in 2021

Since the Qualified Mortgage rule went into effect in early 2014, non-QM lending has become a multi-billion-dollar business. For all the doubters out there, take note that some early adopters are now making big bucks originating loans that don’t meet the rigid QM definition. If you’re curious just who these mortgage lenders are, wonder no… Continue reading Top Non-QM Lenders in 2020

Here we go again – the Consumer Financial Protection Bureau (CFPB) announced yet another delay in the final rulemaking related to the Qualified Mortgage definition. What was expected to go into effect by July 1st, 2021 has now been pushed back until October 1st, 2022 in light of borrower struggles related to COVID-19. Prior to… Continue reading CFPB Moves to Delay Qualified Mortgage Final Rule

Before closing out 2020, the Consumer Financial Protection Bureau (CFPB) managed to issue two final rules related to qualified mortgage (QM) loans. The first relates to General QM loans, which previously required that a borrower’s debt-to-income ratio (DTI) not exceed 43 percent unless it met the underwriting guidelines of Fannie Mae and Freddie Mac. This… Continue reading General QM Final Rule Throws Out DTI, Replaces It with APOR

The GSE patch has been officially extended, this time until the General Qualified Mortgage (QM) loan definition in Regulation Z is amended, the CFPB announced this week. It had been set to expire on January 10th, 2021 before a proposal to extend it a year ago, but now that a key portion of the rule… Continue reading GSE Patch Extended Again Until New QM Loan Definition Ironed Out

The Consumer Finance Protection Bureau (CFPB) has proposed a new category of Qualified Mortgage known as a “seasoned QM.” As the name suggests, the underlying home loan must be seasoned for a period of time before it receives the benefits of being defined as a Qualified Mortgage. The bureau is accepting comments regarding the proposal,… Continue reading What Is a Seasoned QM?

Well, it appears the non-QM industry has been rocked by the coronavirus news, which isn’t surprising given just about every business and individual has been affected thus far. It’s hard enough to be any home loan lender these days, let alone a non-QM lender, thanks to the ongoing coronavirus (COVID-19) crisis that’s wreaking havoc on… Continue reading Non-QM Lenders Halting Business Amid Coronavirus Uncertainty

It’s no secret that investors have been eating up mortgage securities backed by non-QM loans, similar to how Wall St. ate up subprime mortgages back in the early 2000s. There’s simply more yield relative to other investments, especially in a world with bond yields inching toward or hitting record lows. And while subprime and non-QM… Continue reading Moody’s: Default Risk of Non-QM RMBS Driven by Underwriting

Just a few weeks after the Consumer Finance Protection Bureau (CFPB) revealed its intention to move away from the DTI limit on Qualified Mortgages, Fitch Ratings released its own take on the matter. In a nutshell, they believe it could weaken borrower protection and usher in “aggressive lending practices,” two major reasons why the QM… Continue reading Fitch: Removing DTI Cap Could Weaken QM Rule

In what was largely expected, CFPB Director Kathy Kraninger signaled the bureau’s intention to extend the GSE patch beyond next January as it works to tweak the Qualified Mortgage rule. At issue is the hard debt-to-income ratio (DTI) limit of 43% that applies to all home loans seeking QM status, which at the moment excludes… Continue reading CFPB to Extend GSE Patch, Move Away from Standalone DTI Requirement