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Expiration of the GSE QM/Patch: Non-Agency Mortgages in a Post-Crisis World
Dechert LLP
1900 K Street, NW
Washington, DC 20006-1110
Tuesday, October 29, 2019, 5:30 PM - 7:00 PM EST
Category: Events

Expiration of the GSE QM/Patch: Non-Agency Mortgages in a Post-Crisis World

Throughout the past 10 years the housing finance market has undergone immense change due to GSE conservatorship, changes in regulation, and markets shifts. These changes have had a wide-ranging effect on the borrower, lenders, and the secondary mortgage market. The agency market specifically has experienced change through conservatorship, single security introduction, and new FHFA regulations. But the non-agency market was drastically reduced in 2008 and only has recently begun picking up speed. In 2014 the CFPB established mechanisms to protect borrowers and consumers from risky loan products by creating the concepts of qualified mortgage (QM) and the ability-to-repay (ATR) rule. All loans are required to meet the ATR requirements in order to ensure safe lending. To be considered a QM mortgage, a lender must make a good faith effort to ensure that the borrower will be able to afford the newly originated loan (ATR) and the loan must also meet eight guidelines set forth by the CFPB. These rules created an opportunity for safe loans that don’t meet the strict guidelines set forth by the QM designation, thus opening the market to new opportunities. The CFPB also expanded the definition of QM to specify that all GSE loans are inherently QM creating the “QM Patch”. This expansion is set to expire in January 2021 and the CFPB is currently undergoing review of the regulation with next steps to be announced later this year. Just like how the creation of the QM Patch impacted the market, any changes to the QM Patch or QM definition will also create ripples through the entire mortgage and RMBS market.

Moderated by: Amanda Johnson, Member of WHF Board of Directors and Analyst at Invictus Capital Partners 

Laurie Goodman, Vice President of Housing Finance Policy at the Urban Institute 
Carl Bell, Senior Managing Director at Invictus Capital Partners 
Dallin Merrill, Senior Vice President of MBS and CMBS Policy, Structured Finance Association 


Date: October 29, 2019  
Time: 5:30 - 7:00 pm 
Location: Dechert LLP, 1900 K Street NW, Washington DC 20006
Metro:  Accessible via the Farragut West and North metro stops 
Cost: Free (Members)  
          $10 (Non-Members)


Register Here


Laurie Goodman, Vice President of Housing Finance Policy at the Urban Institute
Laurie Goodman is the Founder and Co-director of the Housing Finance Policy Center at the Urban Institute. The center provides policymakers with data-driven analyses of housing finance policy issues that they can depend on for relevance, accuracy, and independence. Before joining Urban, Goodman spent 30 years as an analyst and research department manager at several Wall Street firms. From 2008 to 2013, she was a senior managing director at Amherst Securities Group, LP, a boutique broker/dealer specializing in securitized products, where her strategy effort became known for its analysis of housing policy issues. From 1993 to 2008, Goodman was head of global fixed income research and manager of US securitized products research at UBS and predecessor firms, which were ranked first by Institutional Investor for 11 straight years. Before that, she held research and portfolio management positions at several Wall Street firms; she began her career as a senior economist at the Federal Reserve Bank of New York. Goodman was inducted into the Fixed Income Analysts Hall of Fame in 2009.

Laurie serves on the board of directors of MFA Financial and Arch Capital Group Ltd., is an advisor to Amherst Capital Management and a member of Morningstar Credit Ratings Regulatory Governance Board. She has published more than 200 journal articles and has co-authored and co-edited five books. Laurie has a BA in mathematics from the University of Pennsylvania and an AM and PhD in economics from Stanford University.

Carl Bell, Senior Managing Director at Invictus Capital Partners
Carl Bell is a Senior Managing Director and Member of the Investment Committee with Invictus Capital Partners, one of the largest investors in the non-QM market with over $7 billion in whole loans acquisitions. Mr. Bell has substantial sector expertise in structured credit instruments, including high yield and distressed real estate credit. Previously, Mr. Bell co-founded Five Ten Capital, an alternative asset manager focused on deploying equity and debt capital into the single-family rental segment of the housing market. Five Ten was subsequently sold to a large mortgage and real estate investor. He has also served as a Senior Portfolio Manager and Team Leader for Structured Credit for both Amundi Smith Breeden (“ASB”) and Putnam Investments. At ASB he had the additional responsibility of Deputy Chief Investment Officer. Mr. Bell holds an MBA from The Fuqua School of Business, Duke University where he was a Fuqua Scholar and received the James G. Hanes Scholarship. He earned a BS in Mathematics at Carnegie Mellon University.


Dallin Merrill, Senior Vice President, MBS and CMBS Policy, Structured Finance Association 
Dallin Merrill
works at the nexus of politics, policy, and markets in the ever-changing housing finance market. His work focuses on how government policy—implemented via regulation and legislation—affects the secondary market, including Fannie Mae, Freddie Mac, private-label securities, as well as government-run programs like Ginnie Mae and FHA. 


Before the Structured Finance Association, Dallin worked at the Federal Housing Finance Agency, within the Office of Congressional Affairs and Communications division, where he interacted with Capitol Hill and the Administration in their efforts to reform the GSEs while in Conservatorship. He was also previously at the United States Department of Justice in their Office of Legislative Affairs. Since coming over to the Structured Finance Association in late 2016, his portfolio of issues includes helping establish best practices for the PLS market, creating a level playing field that promotes free markets, and advocating for a sustainable, competitive, and thriving private secondary market.