The impairment rate on securitized non-QMs hit 11.1% at the end of February. At the end of 2020, the rate stood at 10.3% after months of steady improvement.

Legal analysts say the bureau’s across-the-board delay on foreclosure starts could face legal challenges. Meanwhile, consumer advocates call for more stringent requirements.

Residential lending with loan terms of three years or less declined by nearly 30% on an annual basis in 2020. LendingHome topped lenders in the fix-and-flip and bridge loan sector. (Includes data chart.)

Two non-agency MBS issued in March included a significant number of loans that didn’t receive full appraisals due to GSE policies. Rating services penalized the collateral by increasing assessed LTV ratios.

AIG is set to issue a jumbo MBS with new production and MFA Financial has a non-QM deal with loans that have seasoned for 16 months. A surge of issuance also looks likely later this month.

CSBS moving forward with servicing standards for nonbanks; A&D launches jumbo with new QM standards; Angel Oak Commercial Lending expanding into wholesale; Redwood adds Faith Schwartz and Armando Falcon to its board.

Some lenders are originating jumbos under new QM standards that don’t require them to meet Appendix Q of the ATR rule.

A group of 15 lenders tracked by this publication increased production of IOs in 2020. Many of them are banks that are able to keep the loans in portfolio. (Includes data chart.)

The margins on originating non-QMs look good enough for Impac to resume production. The lender suffered a large loss in 2020, partially due to pandemic-driven volatility in the sector.

The investment-property lender boosted income in 4Q20 with a whole-loan sale. The firm is also planning to issue an MBS backed by recently funded loans in 2Q21.