Interviews August 11, 2014

Partner Shanell Cramer Discusses Risk and Opportunities in Non-QM Lending in National Mortgage News

Finance Group partner Shanell Cramer reflects on the rising interest and secondary markets’ and rating agencies’ roles in non-QM lending in National Mortgage News.

What’s behind the rising interest in non-qualified mortgage lending?

Lenders recognize that there is a market for non-QM loans that could potentially lead to lucrative and long-lasting opportunities. In order to stay competitive in the marketplace, lenders need to find opportunities outside the traditional QM box.

Are secondary market participants jumping in?

Yes. We are seeing a steady increase in the origination and financing of non-QM loans, and recent surveys indicate that more than one-third of mortgage bankers will offer non-QM loans in targeted markets this year.

What role are rating agencies playing?

Rating agencies are key to the future success of non-QM loans as lenders look for viable exit strategies. Several rating agencies have announced criteria for rating non-QM loans, resulting in increased comfort for lenders interested in participating in the non-QM market.

Read the article in National Mortgage News

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Alex Wolfe
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