Some non-QM lenders weathered market volatility in March 2020 without halting production while others took a few months off. Now, two of the top players in the sector are ready to increase production.
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 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.
Wells Fargo, which exited the correspondent channel for jumbo mortgages in April, is still not sure if or when it will resume originating the product through the platform.
Originations of expanded-credit mortgages are up in 2020 despite a pullback by nonbanks that dominated the top-10 lender ranking in 2019. The increase this year was led by banks.
The CFPB’s proposal to replace the 43% DTI ratio limit for determining QMs with a price-based approach has received support from industry participants.
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