The jumbo market was humming along at the start of the year until volatility from the coronavirus disrupted lending in March. Originations of jumbos declined sharply and the sector lost market share. (Includes data chart.)

Neuberger Berman issued a non-QM MBS this week, ending a lull in issuance that started in late February due to volatility from the coronavirus. Other issuers also plan to return to the market.

Angel Oak is originating non-QMs again and a handful of other shops plan to re-enter as well. However, some lenders continue to hold off.

Redwood took a $943 million loss in the first quarter amid volatility from the coronavirus. The REIT laid off about 35% of its employees in April, among other adjustments.

The non-agency MBS market could face problems if it fails to set uniform standards on forbearance, according to the Milken Institute.

Profit at Velocity Financial declined in the first quarter and half the staff was temporarily furloughed. Still, the firm plans to issue an MBS in the coming weeks and get back on track.

Lenders that focus on residential investment properties continue to originate loans, albeit with tighter standards and at higher interest rates.

SLS settles foreclosure issue; KBRA places non-agency MBS on watch for downgrades; Provenance blockchain platform facilities loan sales.

The stall in issuance of non-QM MBS could be close to an end. Two firms plan to issue deals, though the exact timing isn’t clear.

Sprout Mortgage, the third-ranked expanded-credit lender in 2019, has restarted non-QM lending, but with tighter underwriting standards.