Mortgage lenders are rebranding sub-prime mortgages and are allowing home buyers with low credit scores and high debt levels to acquire them. Over $45 billion in what used to be called “liar loans” – now labeled “non-qualified” or “non-QM” – have been written for risky home buyers in 2018.
Tom Hutchens, an executive vice president at Angel Oak Mortgage Solutions, one of the biggest providers of these loans said, “What we’ve been doing is taking a measured risk”.