Mortgages that do need meet new ability-to-repay rules are likely to be securitized only sporadically, according to participants at the ABS East conference.

Panelists at a session late Tuesday agreed that sponsors are likely to follow the example of Redwood Trust, which included just two such loans in its latest deal, Sequoia Mortgage Trust 2014-3. And those two loans came close to meeting the criteria for qualified mortgages (QM), which fall under a safe harbor from liability under the affordability rules.

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