NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a recap of the IMN Non-QM Forum 2019, which was held in Los Angeles on November 14-15. The event welcomed 450 registered attendees who took part in the first-of-its-kind conference focused on the non-qualified mortgage (NQM) lending market.
The conference was timely, given an upward trend in the non-QM securitization market over the past three years to an estimated $22 billion this year compared to $10 billion in 2018, and up from $3 billion in 2017 and $1 billion in 2016. Based on audience questions and the direction of certain panel discussions, it was clear that certain market participants new to the non-QM segment were grappling with some fundamental questions including:
- How different is non-prime NQM lending from pre-crisis Subprime lending?
- Are the risk/return trade-offs in the space attractive to investors?
- Given the potential expiration of the temporary QM provision (the so-called GSE Patch), can the existing origination and securitization infrastructure handle a potentially dramatic rise in demand?
- What is the best way to document income on an “alternative” (e.g., absent tax returns, W2s, pay stubs) basis?
To view the recap, click here.
Related Publications: (available at www.kbra.com)
- Potential Effects of the GSE Patch Expiration
- Credit Evolution: Non-Prime Isn’t Yesterday’s Subprime
- Deconstructing the Myth of Early 2000s Credit Benchmarking
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
