Some lenders are originating jumbos under new QM standards that don’t require them to meet Appendix Q of the ATR rule.

A group of 15 lenders tracked by this publication increased production of IOs in 2020. Many of them are banks that are able to keep the loans in portfolio. (Includes data chart.)

The margins on originating non-QMs look good enough for Impac to resume production. The lender suffered a large loss in 2020, partially due to pandemic-driven volatility in the sector.

The investment-property lender boosted income in 4Q20 with a whole-loan sale. The firm is also planning to issue an MBS backed by recently funded loans in 2Q21.

ARM production increased on an annual basis in 2020 but its share of first-lien originations fell to a level not seen since 2009. (Includes data chart.)

The share of fix-and-flip home sales completed with financing declined on an annual basis for the first time in a decade.

Lenders originating business-purpose loans want explicit exemption from state licensing requirements.

Provident drops jumbos from warehouse securitization; The Change Company hires former Angelo Gordon MD; FoAM wins bid for Benji.

Lenders can use the QM standards drafted in the waning days of the Trump administration. But there’s no certainty new leadership at the CFPB will leave them as they are.

MFA Financial made an investment in a non-QM lender, Starwood Property Trust is closing in on a similar move, and Western Asset Mortgage Capital expanded its purchase agreements.