GSE loan limits could go up by 20% next year, reducing the share of loans that could be non-agency jumbos. Even with lenders offering higher GSE loan limits in advance, Redwood hasn’t seen much of an impact.

Non-agency MBS can generate returns in the mid-teens, according to some issuers. Also, a reduction of limitations placed on the GSEs isn’t expected to slow non-agency MBS issuance of GSE-eligible loans.

Originations of non-agency mortgages for residential investment properties increased by nearly 60% in the third quarter at Velocity. The lender also received a record amount of loan applications in October.

Non-agency mortgage lenders face uncertainty as the new CFPB director could choose to revise the QM standards established during the final months of the Trump administration.

Mixed trends for non-agency mortgage performance; Pretium acquires fix-and-flip lender Anchor; Guild offering no downpayment jumbos to doctors; Sachem ups profits in 3Q; new home-equity lender raises capital.

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.