A new report indicates that residential lending to borrowers who don’t meet Qualified Mortgage rule requirements is not the same as pre-crisis subprime lending.

The Consumer Financial Protection Bureau’s QM designation doesn’t mean strong credit, so non-QM mortgages don’t always indicate bad credit or excessive risk.

Pre-crisis subprime programs often required little or no income documentation. But that’s not the case for non-QM loans, where underwriters thoroughly analyze the income.

Source: Mortgage Daily