The real estate investment trust for now is focusing on managing liquidity and protecting its capital structure. Angel Oak Mortgage purchased only $62.4 million of non-QMs in the third quarter.

The business-purpose lender is “intentionally” slowing originations. No big surprise given that the non-agency market overall isn’t doing well.

Two of the deals are backed by investor debt service coverage ratio mortgages. There is also a 100% HELOC transaction in the works.

Another non-agency player assuming a defensive position is Rithm Capital. The firm has cut loan-to-value ratios and tightened underwriting.

The REIT believes the best opportunities are in business-purpose lending. But higher rates and tighter underwriting will slow originations.

The losses were driven by negative asset marks and impairment of assets related to its soon-to-be-shut mortgage originations business.

Private mortgage insurers expect a boost in business from pricing changes in the conventional market. But an FHA mortgage insurance premium cut, expected sometime in the next several months, could swing business back to the government-insured market.

The biggest decline was in non-agency CMBS, where issuance tumbled 30.2%.

Comments on proposed changes to Interest Rate Reduction Refinance Loans are due Jan. 3.

Among originators, CrossCountry ranks 19th overall, according to Inside Mortgage Finance...