Originations of jumbo mortgages shifted somewhat toward the correspondent channel during the fourth quarter of 2021, helped by JPMorgan Chase and Wells Fargo. (Includes data chart.)
Higher interest rates took a bite out of Angel Oak Mortgage’s profits in the fourth quarter, but its non-QM originations continue to remain strong. The firm also plans to maintain regular issuance of MBS.
The firm boosted its originations of non-QMs during the fourth quarter, though company officials suggested loan production in the first quarter could decline.
An increase in the share of minorities working as loan originators could boost approval rates for loan applications by minority borrowers, according to findings from two new studies.
As the “easy” refis decline, lenders are turning to non-QMs, renovation loans, equity-extraction products and other less common offerings. There are also other moves lenders can make at the beginning of a down cycle, according to industry analysts.
The expanded-credit market got back on its feet in 2021 after being knocked down by the coronavirus. Originations were close to pre-pandemic levels and Angel Oak expects its production to double this year. (Includes data chart.)
Originations of non-agency jumbo mortgages were essentially flat in the fourth quarter of 2021 compared with the previous quarter. Still, for the full year, the market was hot and gained market share. (Includes data chart.)
In January, the GSEs took in a significant volume of mortgages with balances greater than the baseline conforming loan limit for 2021. Note: A number of lenders had given themselves a head start on 2022 loan limits.
Banks that expand mortgage lending beyond their local markets into high-growth areas face some risks, according to findings published by the International Monetary Fund.