A former Consumer Financial Protection Bureau official is launching a mortgage company next year to originate non-qualified mortgages.
Former CFPB deputy director Raj Date is the managing partner of Fenway Summer that will launch a wholesale mortgage company in 2014.
The new venture will table fund loans and assume all the risks of non-qualified mortgages.
“We see a tremendous opportunity” with non-qualified mortgages, Date told NMN.
The managing partner of Fenway Summer noted that 10% to 15% of loans originated today have debt-to-income ratios greater than 43% and fall into the non-QM bucket.
The Washington-based mortgage company could also purchase interest-only loans, which are considered
Many incumbent lenders will shy away from making non-QM loans, Date said. But Fenway Summer will be able to serve the non-QM market by “building an engine that is specifically targeted at that customer need.”
As a wholesale lender, the new mortgage company will work with regional banks and mortgage brokers.
