Understanding Non-QM Mortgages: Origins and Opportunities Post-Dodd-Frank
The landscape of the mortgage industry underwent significant changes following the financial crisis of 2007-2008, leading to the introduction of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. One of the outcomes of this regulatory overhaul was the emergence of Non-Qualified Mortgage (Non-QM) loans. These financial products have carved a niche in the housing market, offering alternative pathways to homeownership for those who don't fit the traditional lending criteria. This blog explores what Non-QM mortgages are, their origins in the post-Dodd-Frank era, and why they represent a vital segment of the mortgage industry today.