The CFPB is hoping that by removing a firm debt-to-income ratio metric from QM qualification standards, lenders will come up with new techniques to qualify borrowers.

Under the proposal, some 147 smaller banks and credit unions won’t have to maintain an escrow account for higher-priced mortgage loans.

The proposal could eliminate GSE eligibility as a standard for a loan to be deemed a qualified mortgage. The regulator aims to level the playing field between the non-agency market and Fannie/Freddie.

Eleven expanded-credit MBS have been introduced since June 15, with a total unpaid principal balance of $3.4 billion.

A recent cash infusion will help MFA Financial revive its first ever non-QM MBS. The deal had been put on hold because of the pandemic.

Sales of non-QMs at distressed prices accounted for a large share of the nearly $65 million loss Impac took in the first quarter.

Interest-only loan production dropped nearly 25% in 1Q. Meanwhile, the share of IOs originated in areas vulnerable to storms is increasing. (Includes data chart.)

Velocity issues unrated MBS; non-QM lenders loosen guidelines; Caliber settles with NYAG on loan mods; EasyKnock raises capital.

The lender took millions of dollars in reserves for potential buybacks and litigation involving the bank’s now shuttered non-QM program.

The impairment rate on non-QM MBS increased by more than five times in April as borrowers felt the side effects of the coronavirus. The worst performing non-QM loans were those to self-employed borrowers.