Some collateral attributes, such as non-full documentation and a high percentage of non-QM and HPQM loans, fall slightly outside the credit box seen in other recent prime transactions, according to Fitch.
Angel Oak Companies' affiliates increased their production of loans made outside the boundaries of the Qualified Mortgage definition by 90% year-over-year during the second quarter, when most lenders' volume fell.
Since its inception, the qualified mortgage rule has been synonymous with loans purchased by Fannie Mae and Freddie Mac or guaranteed by government agencies. But a broader QM definition could change that by creating more competitive private-label options.
As President Trump signed the regulatory relief bill into law on Thursday, most of the attention was on a provision to help regional banks with more than $50 billion of assets. But a majority of the new law is aimed at helping institutions below $10 billion. Here's how.
The increased regulatory burden created by the Dodd-Frank Act restricted bank residential lending in 2017, especially when it came to non-qualified mortgages, according to an American Bankers Association survey.