Mortgage Navigator • Non-QM Underwriting
Credit Events & Recovery
The date of the event is only one part of the risk analysis.
Event details matter
Bankruptcy chapter, discharge vs dismissal, foreclosure completion, short sale, deed-in-lieu, mortgage lates and subsequent re-established credit can produce different program outcomes.
Layer with leverage
Recent credit events may interact with maximum LTV, reserves, loan amount, occupancy and pricing. A program that permits an event does not necessarily permit every other risk layer at its maximum.
Investor matrix, not a universal Non-QM rule. Bank-statement calculations, expense factors, DSCR formulas, asset haircuts, credit-event seasoning, LTV, reserves and documentation can vary materially by investor and lender. MortgageDadOf3 separates the concept from the actual program matrix so a lender overlay is not mistaken for an industry-wide rule.
Consumer-purpose loans still require the applicable consumer-protection analysis. For covered transactions, Regulation Z’s Ability-to-Repay framework generally requires a reasonable, good-faith determination of repayment ability. Alternative documentation is not the same thing as “no documentation.”
Consumer-protection references
CFPB / Regulation Z §1026.43 Ability-to-Repay · CFPB Qualified Mortgage explanation · IRS IVES transcript information