Accounting issues related to a prior acquistion led to a $97.4 million net loss for the second quarter at Impac Holdings, the nonbank reported this week. Despite significant challenges in the market, the company managed to boost its production of home loans that don’t meet the qualified-mortgage standard.

The government-sponsored enterprises’ holdings of vintage nonprime mortgages continued a gradual decline during the second quarter of 2018, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]

The first prime jumbo mortgage-backed security to be issued in the third quarter of 2018 won’t close until more than a third of the way through the quarter. Redwood Trust is set to issue a $329.7 million deal, which is somewhat smaller than other prime jumbo MBS from Redwood this year.

A spokesman said Impac is now funding $100 million per month in nonprime loans and plans to grow the business further.

At the end of July, Citadel serviced $1.75 billion of non-QMs…

At June 30, Redwood held $5.5 billion of residential loans on its books, up 40.6 percent from a year ago.

The revised definition excludes from points and fees any compensation included in the interest rate and for which the consumer was separately charged.

Starwood is now directly sourcing loans from Impac and hasn’t tapped any other originators.

Loans from United Shore account for 19.0 percent of the new issuance.

In settling, Wells – the nation’s largest home lender and servicer – did not admit any liability.