The correspondent channel accounted for 5.7% of jumbo originations among a group of major lenders tracked by this newsletter, down from 10.5% in 2Q20. The retail channel gained all of that market share. (Includes data chart.)

With GSE conforming loan limits increasing by 7.4% in 2021, jumbo lenders could miss out on billions of dollars in originations. But there are some opportunities in areas where home prices are rising quickly.

Lenders tightened underwriting standards on non-agency mortgages in March and April, opting to focus on agency refis. But when that business declines, non-agency lending could rebound.

Among a group of 15 lenders, IO production increased by 22% in the third quarter and by 60% at the nine-month mark. (Includes data chart.)

Forbearance offers depend on what’s allowed by non-agency MBS contracts, but some deals don’t address the issue at all.

Holdings increased by 1.2% in the third quarter. Wells’ boosted its portfolio while BofA reduced its holdings. (Includes data chart.)

Three issuers of jumbo MBS offered deals in the past two weeks, including the first post-2010 issuance from Morgan Stanley.

Loans in forbearance decline; non-QM impairment rate falls; non-agency trading booming at Maxex; fix-and-flip lender on track for $1 billion in production; former Ocwen CFO now leading LendingHome.

In the twilight of the Trump administration, the FHFA is taking steps that could make the non-agency market more competitive with the GSEs. A Democrat in the White House could mean otherwise.

Proposed standards by state regulators for nonbank servicers could cause problems for smaller firms, according to industry attorneys. But state regulators defended the proposal ahead of the comment deadline.