Moon Mortgage plans to offer loans with underwriting based on crypto holdings. Both purchase mortgages and investment-property loans are planned, with borrowers needing to post 100% of collateral.
Angel Oak Companies is grappling with weak demand for non-QMs. One of the firm’s lending units laid off about 20% of its staff last week and Angel Oak’s REIT unexpectedly replaced its CEO this week.
The mortgage exchange will now facilitate originations and sales of various types of non-QMs, with “some of the industry’s most generous guidelines” for the products.
Non-QM impairments decline after two-month increase; Balbec unit offers non-QM MBS with loans from Sprout; new CIO at Redwood; Velocity quickly packages business-purpose loans.
Delinquencies on expanded-credit MBS are increasing but investors in the deals appear to be protected at the moment. A review of the sector by Fitch prompted many upgrades and no downgrades.
The expanded-credit mortgage sector bucked the trend and increased production in the second quarter. While some lenders significantly boosted originations, others recorded sharp declines. (Includes data chart.)
Less-capitalized non-QM lenders struggled amid weak demand for the loans in the secondary market. Some firms are looking to take advantage of that weakness.
Non-QM lenders are regaining their footing as volatility in the secondary market recedes. And many potential non-QM borrowers are comfortable paying relatively high interest rates, helping to boost originations.
Impairments, which reflect delinquencies and modifications, increased on securitized non-QMs for a second consecutive month. In July, the performance of severely distressed borrowers also worsened.