Former Deputy Director with the Consumer Financial Protection Bureau Raj Date is emerging in the mortgage-lending market, according to an article in The Wall Street Journal.
Fenway Summer, the new mortgage firm, is based in Washington's Georgetown neighborhood and will focus on loans that do not count as qualified mortgages, the article explains.
Date believes there is a robust business to be built around the loans that do not meet QM standards, accruing to about $250 billion a year.
According to the article, many lenders said they would avoid lending outside the QM realm, but Date said it is manageable.
Out of $1.25 trillion in projected mortgage lending this year, only about $20 billion would fall outside the qualified mortgage restrictions, according to Mark Zandi, chief economist at Moody’s Analytics. While that amount should pick up by 2015, it "will remain a small part of the mortgage market for the foreseeable future," Mr. Zandi said.