Many lenders and investors have been steering clear of loans outside of the qualified mortgage credit box due to an inability to get their arms around these loans’ higher compliance risks. But that’s changing for some players.
Lenders who make or buy non-QM loans — which aren’t protected by the government safe harbor protections that QM loans enjoy and can also add to regulatory constraints in the secondary market — are learning how to get more of a handle on this risk, in part by ensuring they don’t stray too far away from the QM boundaries by providing originators with compliance training on their guidelines.
via Disciplined Underwriting Guides Lender s Non-QM Strategy|National Mortgage News.
