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.
Mortgage-related gripes to the CFPB declined by 14% in the third quarter. Loan mods showed the weakest improvement, with complaints down 5%. (Includes two data charts.)
Originations of non-agency mortgages for residential investment properties increased by nearly 60% in the third quarter at Velocity. The lender also received a record amount of loan applications in October.
Community Reinvestment Act requirements that traditionally have only applied to depositories will be imposed on nonbanks in New York. The MBA warned that the standards are “unworkable.”
With interest rates on the rise, refinance volume is expected to drop in 2022. Purchase-mortgage lending could hit a record level, but it won’t fully offset the loss in refis, putting pressure on margins.
Fitch revised its outlook for Provident Funding Associates to negative due to competition in the wholesale channel but upgraded its rating of UMM’s unsecured debt. MISMO is seeking comments on tech that would help obtain MI quotes.