Business-purpose lender Velocity Financial increased loan production in the first quarter of 2021 but income declined. The firm, which sold fewer loans in the first quarter, issued an MBS in May.

In the absence of the GSE patch, lenders have fewer incentives to rely on GSE eligibility when determining a loan’s QM status. Still, the final destination of a loan will depend on pricing in the non-agency market.

At least until October 2022, jumbo lenders can use either the long-standing qualified mortgage standards or the new, more flexible standards.

Guaranteed Rate sold $5.55 billion of jumbo mortgages to unaffiliated buyers in 2020, nearly three times the volume of second-ranked Quicken Loans. (Includes two data charts.)

Redwood Trust nearly doubled its net income in the first quarter, helped by the quick aggregation and sale of jumbo mortgages.

The real estate investment trust also plans to acquire business-purpose loan originator Lima One.

Goldman Sachs Mortgage Company has acquired more than $800 million of non-QMs this year and is set to issue a $291 million MBS.

Non-agency lenders are waiting for a decision from the CFPB on standards for qualified mortgages. The CFPB wants to extend the QM patch, though the Trump administration threw a wrench in that plan.

Mortgage originations declined by 11% in the first quarter at First Republic while Redwood increased its lock volume by 21% from the fourth quarter.

Non-agency originations of higher-priced mortgages declined by 35% on an annual basis in 2020. The higher-priced designation is a proxy federal regulators use for subprime mortgages. (Includes two data charts.)