Demand in the secondary market for non-qualified mortgages is helping to fuel originations of the loans. Delinquencies in the sector have ticked up but aren’t yet a major concern.
Would a second Trump administration be more likely to take the GSEs out from under the government’s thumb? It didn’t work the first time around, but Biden hasn’t been interested at all.
Brent Giese, executive director for fixed income at Daiwa Capital Markets, said the new margin requirements will put additional financial stress on mortgage lenders.
Debt service coverage ratio mortgages qualify borrowers based on rental income rather than the traditional debt-to-income ratio metric used by the GSEs.