Week Ending Friday, January 3, 2019

To say 2019 was a huge year for non-QM, would be an understatement.

In 2019 we saw:

5. Not only did non-QM leader Deephaven Mortgage explode in wholesale, but also was acquired by Pretium

4. Lots of non-QM securitizations like Angel Oak starting off the year with the largest non-QM securitization in a decade. Another big one was the Verus $609.2 million securitization.

3. This year a lot of non-QM lenders added technology to bring automation to fuse speed and personal service into the non-QM process. This is why we saw tech firms like LoanScorecard and Lender Price add tech stack options for non-QM lenders.

2. Non-QM originations blew up. Lenders like Angel Oak Mortgage Solutions saw a 41 percent increase from Q3 2018 to Q3 2019 in originations.

1. The biggest story of 2019 was the QM patch's January 2021 expiration. Currently, the patch allows the GSEes to purchase $150 billion in loans that exceed the QM's 43% DTI cap. If the QM patch expires, many of these loans will potentially become non-QM loans. This brings about a warning about the GSE patch expiring. Meanwhile, the CFPB sought input on QM patch. Make sure you read former David Steven's Replacing the QM Patch: Time to Get It Right. Lastly, check out this report that considers non-QM in a post-GSE patch market.

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Each issue shares the news and views related to the emerging non-QM space. Yes, we feature nmp content, however, we often include links to other publications and resources to help mortgage professionals that are focusing on non-QM or are looking to expand their non-QM practice.

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