Seeking Alpha

QM rule opens opportunity for non-bank lenders

  • "Non-QM [mortgage lending] is a huge opportunity, the largest we've seen in 30 years," says a hedge funder at the ABS conference, as reported by Housingwire's Paul Jackson.
  • Credit risk has always been a "moving target," says a non-bank mortgage lender, but the CFPB's qualified mortgage rule "cement(s) those lending boundaries, giving investors much more clarity on what can be done "outside the box."
  • "There is a huge universe of people who right now sit outside of QM and can afford this kind of lending."
  • Private label lenders/securitizers maybe set to benefit include Redwood Trust (RWT) and PennyMac Financial Services (PFSI +0.2%).
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Comments (1)
  • Brian Bobbitt
    , contributor
    Comments (2007) | Send Message
     
    I kind of agree with this information, and I know RWT to be a good company. For sure not one of the mREITs where folks chase rainbows.
    It is not in my stock picks,but I feel this is perhaps a lil light in the window to check it out.
    Capt. Brian
    The Lost Navigator
    PS, I have made some nice money a while back with RWT,it was my first attempt at dividend yielders.
    22 Jan 2014, 10:49 PM Reply Like
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