The retail channel share of jumbo originations is coming back down to earth while the broker channel is receiving a boost thanks to United Wholesale Mortgage, among others. (Includes data chart.)
In a familiar refrain, participants in the non-QM market suggest the sector is ready for takeoff. Still, technology in the non-QM market lags compared with the GSEs.
ARM lending ticked up during the third quarter though the ARM share of total originations remains well below the level seen in 2019. (Includes data chart.)
Expanded-credit mortgages gained market share as total first-lien originations declined in the third quarter. Still, the sector accounted for only 1.1% of the total origination pie. (Includes data chart.)
Angel Oak is the latest expanded-credit lender to offer mortgages based on an individual tax identification number to individuals not eligible to obtain a Social Security number.
Non-QMs offer the promise of strong margins and a product to replace refinance volume. They also account for a miniscule portion of mortgage originations.
Originations of non-agency jumbo mortgages increased by 6.3% from the second to the third quarter. Wells Fargo remained the top jumbo lender, while three firms in the top 10 posted declines. (Includes data chart.)
The lender is increasing its originations of non-QMs, which helped it generate a profit for the third quarter. Still, non-QM pricing declined early in the fourth quarter and there are additional costs tied to originating the loans.