The review will consider the interplay between the non-agency market and the GSEs and the impact of the exemption for qualified residential mortgages...
One Freddie shareholder quipped: "It sounds like something their advisors would have recommended – to improve proforma [earnings] going into a capital raise."
What’s so interesting about the Sterling disclosure is that it comes from a bank. For the most part, depositories have shied away from non-QMs unless it’s jumbo product made to wealthy individuals…
Other matters on the government’s priority list: setting a commitment fee, resolution of the QM patch, and “any other similar changes that could impact the GSE footprint.”