With the potential for interest rates to decline further, originators in the RTL and DSCR space have varying strategies for dealing with volume changes.

Industry participants recently warned against common types of fraud involving DSCR mortgages and residential transition loans.

At a recent conference, lenders discussed what makes a good RTL and DSCR borrower, as well as common mistakes borrowers make taking out investor loans.

Investors in the secondary market are showing strong demand for debt service coverage ratio mortgages, even with delinquencies ticking up.

Velocity this week announced a $500 million debt offering. The lender plans to use part of the proceeds to acquire a company.

Balance Homes resumes operations; non-QM impairments rise in December; Brokers First Funding appoints Steven Winokur as chief marketing officer; American Heritage Lending offering product based on income from cannabis.

FHFA quietly increased the cap on the GSEs’ holdings of agency MBS from $40 billion apiece to $225 billion. That’s the same as the cap on their entire retained mortgage portfolios.

Freddie continues to lead Fannie in issuance of specified-pool MBS. In the fourth quarter, there were relatively large gains in pools of mortgages with loan amounts below $275,000, as well as pools of Texas loans. (Includes data table.)

Investors are seeking out Ginnie Mae custom pools with better convexity profiles than those of forward trading multiple-issuer pools, causing the convexity of the multi-pools to further deteriorate.

Lower interest rates and potential policy changes are expected to help drive an increase in prepayment activity this year.