U.S. Structured Finance Newsletter: Non-QM Securitizations versus Pre-Crisis Alt-A/Subprime – How Do They Differ?

The Qualified Mortgage (QM) and Ability-to-Repay (ATR) rules (the Rules) issued by the Consumer Financial Protection Bureau (CFPB) became effective on January 10, 2014. Since then, the residential mortgage-backed securities (RMBS) market has issued approximately 73 securitizations that have been backed substantially by non-QM loans (data as of March 2019).