Volume 2014 - Number 2
January 17, 2014
Lack of Secondary Market Will Keep Many Lenders, Large and Small, From Originating Non-QM Loans
The absence of a ready secondary market for mortgages that dont fit into the safe harbor or rebuttable presumption categories of a qualified mortgage under the Consumer Financial Protection Bureaus ability-to-repay rule is discouraging mortgage lenders of all sizes from originating non-QMs at least in the initial phase of the rules implementation. A common question weve received is whether we plan to write non-QM loans, William Emerson, CEO of Quicken Loans, said before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit during a hearing this week on the effect of the CFPBs new rule. I can tell you categorically that Quicken Loans, like the overwhelming majority of lenders, will not lend outside the boundaries of QM. In fact, even if we wanted to, we wouldnt be able...
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This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.
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