After reducing its non-agency investments amid volatility from the coronavirus, Annaly is ready to ramp up activity in the sector. The REIT is acquiring non-QMs and packaging them into MBS.

Non-agency forbearance increases; personnel moves at Deephaven, Wells Fargo and Quontic; new non-agency MBS; a jumbo mortgage symposium; PCMA loosens standards for jumbo product.

Wells Fargo is once again buying jumbo mortgages from correspondents. Meanwhile, newly minted public company United Wholesale is set to resume originating the product through brokers.

The CFPB’s acting director has asked bureau officials to explore options to maintain the status quo on QM standards with less than a month left before the new rule takes effect.

Originations of non-QMs tend to be more heavily weighted toward purchase mortgages than the broader mortgage origination market. Lenders are working to advise loan originators on the unique product offerings in the sector.

The non-agency residential lending unit and business purpose lending arm are projected to earn returns greater than 20% this year. Still, Redwood took a large loss in 2020 due to volatility from the coronavirus.

Sterling Bank and Trust reached a settlement over faulty disclosures on the bank’s now shuttered non-QM program. The bank has upped reserves for further potential losses stemming from repurchases and loan sales.

Non-agency forbearance declines; Pacific Western Bank acquires Civic Financial Services; Velocity inks new financing; Angel Oak Commercial Lending set for growth.

The non-QM market is poised for a comeback, helped by strong demand from investors in the secondary market. However, production is lagging as lenders continue to focus on agency refis.

First Republic Bank reported increased production in the fourth quarter and for full year. Volume was down on an annual basis at Flagstar Bank and Redwood Trust.