How Vital is the Non-QM Patch

 

In case you have not heard, the QM Patch expiration is a hot topic right now. It’s set to expire in January of 2021. The patch is often times referred to as the GSE patch because it allows Freddie and Fannie to approve loans with higher DTI ratios than would be allowed under QM guidelines. QM guidelines limit DTI to 43% currently. With so much discussion and confusion regarding the QM patch, Mortgage Professional America published an article and asked for Angel Oak’s stance on the subject.

Tom Hutchens, EVP of Production, at Angel Oak Mortgage Solutions is featured in the article explaining more about the QM Patch and how the resurgence of non-QM makes it unnecessary now. Private market capital is best suited for riskier loans with high DTI.