Originators of non-qualified mortgages are selling product in smaller batches and as whole loans. The reason: better execution than delivering them into MBS.
Volatility in the secondary market for non-QMs receded within two months but originations are still nowhere near pre-pandemic levels. Reason: lenders focusing on agency refis.
The fund could be modeled after the Hardest Hit Fund, providing funds to state housing finance agencies to help borrowers bring their mortgages current.
A survey of servicing executives by Fannie Mae found that the companies are having difficulties keeping up with forbearance requirements. Staffing capacity is also an issue.
Lenders surveyed by Altisource cited technology as one of their biggest challenges, while also selecting technology enhancements as an important factor to increase business.