For years, industry analysts raised concerns about the quality of CLOs, warning of poor performance. While issues from the coronavirus prompted some problems, AAA-rated tranches of CLOs have held strong.
The new standards for qualified mortgages will provide lenders more underwriting options. But how much change that will bring in product market share remains to be seen.
A few fun facts about Home Point: Through the first nine months of 2020 the company posted net earnings of $422 million compared to a loss of $45 million for the comparable period a year earlier.