"Lenders who begin originating these products now will lead the industry"
Non-QM lender Verus Mortgage Capital (VMC) reported that it financed nearly $2.6 billion of loans across six-rated and unrated securitization transactions in 2020.
Post-COVID, the correspondent investor completed five rated securitizations totaling over $1.65 billion in collateral. VMC said that its 2020-2 issuance was the first post-pandemic non-QM securitization with ratings to include both Standard & Poor’s and Fitch Ratings.
Verus also issued its first unrated securitization backed mainly by non-performing loans in 2020, including traditional mortgage loans and residential transitional loans. The company claims to be the biggest issuer of securitizations backed by non-QM loans in the past three years.
Read more: The mortgage industry post-2020 part 1: What’s a Real Property Advisor?
“The non-QM business will grow considerably over the next two years, and lenders who begin originating these products now will lead the industry,” VMC President Dane Smith said. “We will continue to grow our correspondent channel this year by partnering with lenders who are looking to provide Jumbo, non-QM, and investment home financing options.”
