Many jumbo lenders are no longer looking to Appendix Q when originating loans. Instead, they have the option to underwrite loans using GSE automated underwriting systems and obtain QM status.

GSE investment-property business fell by nearly 50% between the second quarter and the third quarter. Second-home activity was also off, though by a smaller amount. Much of that volume went into the non-agency market, though that could change. (Includes one data chart.)

Redwood increased its locks of jumbo mortgages on a sequential basis in the third quarter while First Republic Bank’s lending declined.

HEIs differ from reverse mortgages in that there’s no age limit and the borrower can still have a first mortgage. Separate HEI securitizations were recently issued involving Point and Unlock Technologies.

Securitizing loans originated by Genesis could generate returns of nearly 20% for New Residential. The acquisition is set to close later this year.

There’s plenty of non-agency MBS with GSE-eligible mortgages for investment properties, along with prime jumbo deals, expanded-credit mortgages and even some esoteric collateral.

Non-QM lender Newfi changing hands; Redwood invests in due diligence provider Canopy; Sprout offers bank statement analysis.

The supply of mortgages for non-agency MBS is expected to decline, leading to concerns that industry participants might loosen underwriting standards to prop up volumes.

PennyMac and United Wholesale Mortgage hiked their loan limits for GSE mortgages well before the FHFA is scheduled to announce the official limits for 2022. The move will limit some of the flow of mortgages into the non-agency jumbo market.

AGMIT sold off the last of its investments in commercial mortgages in September, with plans to increase investments in non-QMs and other non-agency mortgages.