Sprout Mortgage, Melville, NY, introduced three non-qualified mortgage products last week, a sign that there’s hope for the sector after all, despite securitizations being on life support.
The privately held wholesale lender looks to be the first of the large non-QM lenders to have resumed originations after disruptions caused by the coronavirus.
Meanwhile, the secondary market for non-agency whole loans remains weak, at least if you’re trying to unload product.
In a new market analysis, Todd Dahlke, a principal in RAMS Mortgage Capital, notes that some nonprime sellers are “hoping for brighter days and better pricing in the near future. This is most prevalent in the non-QM space where many sellers have held out for pricing in the mid 90s.”
The trading veteran added: “We don’t see prices climbing back to these levels.”
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