Redwood paves path for non-QM as Fenway plans debut

Raj Date right size
By Matthew Scully
07 Jul 2014

Redwood Trust will this week be the first to test investors’ risk appetite for high-quality mortgages that fall outside the government’s new lending guidelines, but at least two more firms may securitize other forms of non-QM by end of the year, including Raj Date’s Fenway Summer.

Seven months after regulators moved the goalposts for originating "qualified" mortgages, Redwood is set to become the first issuer to include a select number of high-quality, non-qualified mortgages into a securitization. 

This came as little surprise to those who have long expected super-prime, non-QM collateral to trickle into Redwood’s ...

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