Mortgage Navigator • Non-QM Underwriting
Layered Risk
A guideline may allow each feature individually without allowing every high-risk feature in the same loan.
Think in combinations
High LTV plus recent credit event plus low reserves plus complex property plus alternative documentation can create a different result than any one characteristic alone.
The Mortgage Navigator approach
When a file fails, identify the binding constraint. Sometimes the solution is more down payment, more reserves, different documentation, a different property matrix, a lower loan amount—or simply a different investor.
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