Debtwire: Non-QM Credit Box Almost, but Not Quite, ‘Pre-Covid’

September 21, 2020
Original article by Al Yoon

Caroline Chen, SVP and research analyst at Income Research + Management, spoke with Albert Yoon, a reporter at Debtwire Municipals on non-QM loans, which have seen a return of products that are comparable to those offered pre-pandemic.
As Caroline highlighted, investors have been cautiously optimistic about non-QM mortgages. Even if the elevated number of delinquencies we see today are not resolved, the lower leverage on these loans means that losses should be limited. She also noted that Wall Street analysts remain to be fairly bullish on US housing in general, adding to optimism around levels of severity on mortgage credit investments.