National Mortgage News: Non-Qualified Mortgages are Coming Back, but with Tighter Guidelines

August 28, 2020
Original article by Brad Finkelstein

Caroline Chen, Senior Vice President, offered National Mortgage News and Asset Securitization Report her views on why investors should remain leery of non-QM RMBS even as originators are coming back into the marketplace. Caroline notes that the lack of uniformity around forbearance policies is concerning, and that delinquencies for these securities are at a 20% to 25%. With most issuances originating before the Covid-19 pandemic took hold, Caroline says some borrowers will take up loss mitigation strategies because not everyone can roll back to current pay status.

Read full article here (paywalled).