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Non-QM lenders are racing to stay ahead of rates

Non-QM lenders are racing to stay ahead of rates
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Market for private label securities projected to shrink in 2022

The residential mortgage-backed securities market is reeling from a difficult interest-rate environment which may not improve until 2023.

Non-QM Lenders Could Face Serious Headwinds

BY DOUG PAGE, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL The recent abrupt closure of two Non-QM lenders – one that shuttered its doors and another that’s now under Chapter 11 Bankruptcy protection – may have prompted Flagstar Bank’s warehouse lending division to send out a text message, saying funding advances for Non-QM mortgages will require advance approval. “Effective immediately – Funding advances for Non-QM loans targeted to the investors listed below will require approval in advance,” the text message said. “Haircuts may be adjusted.”

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