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.
