Redwood paves path for non-QM as Fenway plans debut

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By Matthew Scully
10 Jul 2014

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

Seven months after regulators moved the goalposts for originating "qualified" mortgages, Redwood is including 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, interest-only loans with low loan-to-value ratios to trickle into Redwood’s securitizations, but ...

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