Performance of non-QM loans has been strong, buoyed by good house-price appreciation and the fact there have been no lawsuits based on the ability-to-repay rule.
Deutsche noted that after years of a steady broad-based housing market recovery “investors are now facing severe shortages in distressed housing pipelines.”
This fall will mark – unless there’s divine intervention or a Kumbaya moment in Washington – the ninth anniversary of the federal takeover of Fannie and Freddie.