Increased deportation risks and uncertainty about the future of some immigration programs have led non-QM lenders to reduce lending to non-resident borrowers.
The potential privatization of the GSEs has led more lenders to consider the acquisition of non-QM brokers, but the challenges in the market may cap deals.
William Lansing, CEO of Fair Isaac Corp., said the move would encourage lenders to shop for the most lenient credit score in order to qualify more borrowers for GSE loans.