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.
Non-agency mortgages for investment properties are increasing thanks to volatility in GSE pricing and lenient underwriting standards. Volume could take a hit as interest rates increase.
The Underserved Mortgage Markets Coalition has put together a list of actions the GSEs can take to meet their obligations under FHFA’s duty-to-serve program.
Potential first-time homebuyers are facing affordability issues due to elevated home price appreciation. And though home price appreciation is slowing, interest rates are set to rise.
Loan originators hurting for business as GSE refis decline should consider non-QMs, according to industry participants. Some major lenders are expecting non-agency lending to jump this year.