Are Sprout, FGMC, Failures a Harbinger of Hard Times for Non-QM?

National Mortgage News, July 7, 2022–Brad Finkelstein (subscription)
While some online are making comparisons to the shutdown of subprime business in 2008, could this situation be more reminiscent of what happened to nonconforming lending as a result of the Russian debt crisis in the fall of 1998? Back then, investors made a “flight to quality” that impacted the debt, equity and securitization markets the subprime lenders depended on.
https://www.nationalmortgagenews.com/news/are-sprout-fgmc-failures-a-harbinger-of-hard-times-for-non-qm?position=editorial_1&campaignname=V2_NMN_Daily_2021-07082022&utm_source=newsletter&utm_medium=email&utm_campaign=V2_NMN_Daily_2021%2B%27-%27%2B07082022&bt_ee=8FjkPKk02G6%2B2yZJX%2B7Ddeer1VZHfCmmAz58Kn9PPFTbUkaNEtendOkBDuTkbjn0&bt_ts=1657274477903