It’s been nearly a decade since the Qualified Mortgage rule went into effect. As a quick refresher, loans that feature risky terms, such as interest-only, negative amortization, or balloon payments aren’t permitted under the QM rule. The same goes for mortgages with loan terms beyond 30 years, such as 40-year mortgages. On top of that,… Continue reading Are DSCR Loans the New Liar’s Loan?
It’s time to take a look at the top non-QM lenders of 2022. Recently, there have been a lot of headwinds in the mortgage industry. The main culprit has been significantly higher mortgage rates. We’re talking a 30-year fixed that is more than double what it was in early 2022. At last glance, the 30-year… Continue reading Top Non-QM Lenders of 2022
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