Skip to main content

More Than Half of Non-QM Loan Applications Fail

Phil Hall
Dec 17, 2019
Photo credit: Getty Images/nito100

A new data report from Computershare Loan Services, a third-party mortgage service provider, has determined that 54.4 percent of non-QM loan applications not being approved.
 
A new data report from Computershare Loan Services, a third-party mortgage service provider, has determined that 54.4 percent of non-QM loan applications not being approvedComputershare Loan Services determined that 22.2 percent were unsuccessful because of incomplete information, while nearly 40 percent of application failures were caused by incidences of non-compliance or other regulatory issues among the applications.
 
The data report also found approximately 12 percent of application failures were due to missing evidence of the closing disclosure and nearly 10 percent of those that were identified as having credit issues were unsuccessful as a result of originators not updating the application to reflect final documentation–while 8.6 percent could not proceed due to insufficient or out-of-date documentation.
 
In comparison, issues with property or collateral, such as incomplete appraisals, accounted for 7.1 percent of application failures.
 
“Our data help contradict the misconception that non-QM lending has parallels with the sub-prime lending that affected the financial sector a decade ago,” said Tom Millon, chief executive officer of U.S. operations for Computershare Loan Services. “Clearly administrative issues affect both QM and non-QM loan applications, and it’s vital that borrowers and originators ensure that the Is are dotted and Ts crossed on their applications to avoid unnecessary problems.”

 
Published
Dec 17, 2019
KBRA Assigns Preliminary Ratings To SEMT 2021-6

Pool Of 497 First-Lien Loans Combined Have A Principal Balance Of Nearly $449M

Industry News
Sep 16, 2021
Fugo Appoints Bahlman As VP, Client Relations & Sales

Brings 19 Years of Experience To Texas-Based Back-Office Support Company

Industry News
Sep 16, 2021
Envoy Mortgage Expands To Atlanta

Envoy Mortgage lender expanded its Southeast operations to Atlanta, GA.

Industry News
Sep 15, 2021
FHFA Suspends Controversial PSPA Amendments

Today, the FHFA will be suspending controversial provisions added to the Preferred Stock Purchase Agreement (PSPA) on January 14, 2021.

Industry News
Sep 15, 2021
Covius Holdings To Acquire Nationwide Title Clearing

All 670 NTC Employees, Including Senior Management, Will Join Covius

Industry News
Sep 14, 2021
MBA Appoints AVP Of Diversity, Equity, & Inclusion

Promotes Amber Lawrence From Position As Associate Director Of Career Development Programs

Industry News
Sep 14, 2021