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.

New Residential, Redwood and Two Harbors sold non-agency MBS holdings as REITs were hit with a surge of margin calls from their lenders. Efforts by the federal government to prop up the mortgage market haven’t done much for non-agency players.

Non-agency loans account for about 30% of all residential mortgages outstanding and, unlike with servicing for the GSEs or government-insured mortgages, there’s no standardization in how servicers will respond to borrowers facing financial difficulties tied to the coronavirus.