The anemic home lending market has prompted some banks to ratchet up lending to foreign nationals.

Lending to foreign nationals buying U.S. real estate has become a profitable niche akin to making interest-only loans or jumbo loans to wealthy, high net-worth borrowers. Because foreign borrowers typically do not have a traditional FICO score, such loans do not conform to mortgage regulations that went into effect in January, so they do not have the ultra-safe "qualified mortgage," classification.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry