by Calculated Risk on 12/21/2021 02:42:00 PM
Here is an interesting article on non-QM loans By Bill Conroy at Housing Wire: Move over Fannie, the non-QM loan is in the fast lane. Some brief excerpts:
Non-QM mortgages also go to a slice of borrowers facing credit challenges — such as a recent bankruptcy or slightly out-of-bounds credit scores. The loans may include interest-only, 40-year terms or other creative financing features often designed to lower monthly payments on the front-end of the mortgage — often with an eye toward refinancing or selling the property in the short-term future.
The size of the market is relatively small (about $25 billion in 2021 but growing). And the underwriting is generally solid, but this will be a segment of mortgage lending to watch.