Last week, Denver, Colorado-based correspondent investor Titan Capital Solutions (TCS) announced that it would begin purchasing “scratch and dent” loans from approved sellers. In the past, TCS only purchased jumbo loans from its selling partners. “Historically, ‘scratch and dent’ referred to loans with egregious errors in underwriting or compliance,” said Mary Kladde, CEO of TCS,… Continue reading Titan Capital Solutions Will Buy Non-QM Loans

A new survey from the Federal Reserve and the Conference of State Bank Supervisors (CSBS) revealed that the majority of community banks are already originating non-QM loans. This is somewhat surprising, given they’ve only recently come into existence, along with the uncertainty regarding liability. Still, 26% of survey respondents indicated that they were indeed making… Continue reading 64% of Community Banks Are Currently Originating Non-QM Loans

It’s still pretty early days for the Qualified Mortgage rule, but a new survey from Fannie Mae revealed that most lenders don’t plan to take part in non-QM lending. Overall, 80% of respondents indicated to Fannie Mae that they “do not plan to pursue non-QM loans” or would simply “wait and see.” If you break… Continue reading Only About a Fifth of Lenders Plan to Originate Non-QM Loans

This week, the Consumer Financial Protection Bureau announced adjustments to the max points and fees that can be charged on QM loans. In short, banks and mortgage lenders will be able to charge a little bit more and still stay within the QM realm next year. This is the first of what will be ongoing… Continue reading CFPB Announces QM Points and Fees Adjustments for 2015

We’re pretty excited about non-QM lending over here, but because it’s so new, it’s very difficult to determine how big it might become one day. For the record, the QM rules went into effect in January of this year, so it’s still early, early days. However, Deutsche Bank analysts already threw out some numbers regarding… Continue reading Just How Big Will Non-QM Lending Be?