Investor demand for non-QMs plummeted in recent weeks due to fallout from the coronavirus. Some non-QM lenders have stopped originating loans and others are repricing their products.
Out in California, Fremont Bank seems to be telling jumbo customers that if you really want a loan from them, you’re going to pay through the nose. On its website, jumbo pricing for Wednesday was set at 6.375%.
Redwood also implemented a work-from-home policy on Monday that will last for at least two weeks. “We have fully-implemented and tested business continuity protocols to protect our workforce and ensure the ongoing operation of our business across all geographic locations,” the REIT said.
A lender provided e-signed document authentication from DocuSign and testimony from a compliance officer, but that wasn’t enough to convince two courts that the borrower had actually signed the document.
The creation of the qualified-mortgage patch was “unfair” but necessary to prop up originations, according to former CFPB officials who were involved in crafting the temporary rule.
Credit unions tend to offer mortgages with lower interest rates than other lenders. However, their share of originations is relatively low and the gap between them and banks in terms of interest rates has narrowed.