The Corona Virus pandemic has hit the mortgage world. In the middle of March, a number of lenders, some of them big ones, like Flagstar BanK have decided to stop making non-qm mortgages.
Non-qm mortgages, if you remember, are the type of mortgages that, under Dodd/Frank rules make it less risky for banks to lend and borrowers to own. They have no creative features (no interest only, no terms longer than 30 years, low-ish loan amounts. etc.).
In other words, they’re the type of loans Fannie Mae and Freddie Mac would buy.
Because by definition, the lowest jumbo loan amount possible is $1 above Fannie Mae and Freddie Mac’s limit, they are either portfolio loans (i.e.,… More