Underwriting Product; New Correspondent Investor; Lender Disaster News

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Posted To: Pipeline Press

Do you think non-QM is going to “save your bacon?” After a non-exhaustive survey, it appears that non-QM, aka non-Agency, aka expanded credit, is running at about 3% of overall residential volume. If we do $1.5 trillion this year, my HP-12C tells me 3% equates to $45 billion. Let’s round up and say that’s $4 billion a month (a billion a week across the industry) across over 1,000 lenders (another guess of how many offer it). That averages out to $4 million per lender per month, but less for non-depository lenders when you factor out what credit unions and big banks are putting in their portfolios. Yes, averages are misleading, and yes, more and more lenders are offering the option to their MLOs, but still… For perspective, and yes, “expanded credit”…(read more)

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