A cap imposed by the Fed on Wells’ portfolio was a major factor in its decision to stop originating jumbos through correspondents.

Following in the footsteps of Wells, a handful of correspondent aggregators have suspended originations of jumbo mortgages. Underwriting standards for the loans also have tightened.

A handful of lenders continue to originate non-qualified mortgages while the major players in the market pause production.

Delinquencies on non-agency mortgages are likely to increase due to the coronavirus, with the largest impact expected on non-QMs.

First Republic Bank doesn’t plan to chase market share even as other jumbo lenders tighten underwriting standards.

Velocity Financial was increasing originations and income, then the coronavirus hit, halting issuance of a planned MBS and prompting the need for additional capital.

Investments in non-agency assets were offloaded by Annaly and MFA. Some of the loans sold by MFA were likely meant for a non-QM MBS that didn’t close in March.

Fitch proposes changes to MBS rating criteria; Ocwen faces NYSE delisting; Nationwide Equities launches non-agency reverse mortgage.

The major producers of non-QMs suspended originations in March and, with the market paused, layoffs have started.

The top five producers of jumbos continue to offer the mortgages. The production picture is less clear at nonbanks, which don’t have portfolio capacity.