Impac is making some changes aimed at increasing originations of non-QMs after focusing on GSE refis in 3Q19. The lender’s profitability took a hit as GSE mortgages offer lower margins than non-QMs.

GSE 2020 baseline conforming loan limit; ARRC fallback language for ARMs; Finance of America Reverse reduces eligibility age for non-agency products.

Few eMortgages are being originated for non-agency MBS due to many factors, including costly tech and uncertainty over foreclosures.

It’s still not clear how the CFPB will address the patch for qualified mortgages, prompting speculation among participants in the non-QM market. The bureau has the issue listed on its December agenda.

One of the most common types of non-qualified mortgages is a loan for self-employed borrowers underwritten with bank statements. Borrowers often opt for a non-QM rather than re-file taxes.

Seven non-agency MBS deals are in the market at the moment, including five expanded-credit MBS. Many other deals are also in the works.

No publicly registered deal has been issued since the SEC tightened disclosure requirements in 2014. However, revisions contemplated by the agency could change all that.

The dollar volume of conforming jumbo mortgages included in GSE MBS increased sharply in the third quarter. Other noncore GSE business also expanded. (Includes data chart.)

A strategic plan from FHFA includes proposals to help the non-agency secondary market better compete with Fannie Mae and Freddie Mac.

HPS is reportedly paying about $250 million for the non-QM lender. Citadel’s expanded-credit production has outpaced the market this year.