The share of first-time homebuyers leaning on downpayment assistance for mortgages increased in 2019, according to a survey by the National Association of Realtors.
The bulk of non-agency MBS currently being issued is backed by seasoned mortgages. Rating services are also adjusting criteria to account for the coronavirus.
Temporary prohibitions imposed by Pennsylvania could shutdown mortgage originations, the MBA warned. Meanwhile, the trade group noted that servicing standards set by Washington, DC, differ from federal ones.
On average, about half of the borrowers with non-QMs in mortgage-backed securities are self-employed, according to S&P Global Ratings. These borrowers are more at risk to miss payments on their mortgages than salaried borrowers.