Alt-A type mortgage loans, aimed at an underserved market of people with good credit but harder-to-document wages, are gaining traction

Big money managers are lobbying lenders to make more “Alt-A” loans or even buying mortgage-origination companies to control more of the supply themselves.
Wall Street Journal staffer Kirsten Grind reports on an increasingly yield thirsty group of investors seeking higher-risk and higher reward opportunities in housing finance, who are pushing lenders to issue loans to an underserved group of borrowers, like self-employed professionals who have good credit but harder-to-document earnings. Grind writes:
Borrowers who have good credit but might be self-employed or report income sporadically. In part because more Americans work that way, some money managers expect the market could increase to hundreds of billions of dollars each year, or more than 10% of the total mortgage debt outstanding.
Not a piddling piece of the market.

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