Mortgage Banking: Non-QM Loans’ Cool Reception

Consider the plight of a would-be borrower who, despite being a very good risk for a mortgage loan, is not eligible for a Qualified Mortgage (QM). The reason this particular borrower is not eligible is because she doesn’t fall neatly within all of the QM guidelines. Maybe her debt-to-income (DTI) ratio is higher than that magic number 43, despite her considerable disposable income.