DSCR Loans Will Default
If it sounds good or true, he usually is. And why lenders really don't care.
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Since 2018 we originated over 500 DSCR loans, in that time we have seen less than 10 defaults. This video is really doom and gloom. The lenders don't care? The majority of these loans are packaged and sold as mortgage backed securities. If the lenders loan roll is full of defaults, the secondary market stops purchasing the notes, which in turn puts the lender out of business. Right now the rates on these non QM products are better than what Fannie or Freddy are offering with way less red tape. This product has been around since 2010ish, there has never been a wave of defaults, even through COVID. This is click bait.
- Matthew Crivelli
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Freedom Capital Funding, LLC
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