Sales of non-QMs at distressed prices accounted for a large share of the nearly $65 million loss Impac took in the first quarter.

Interest-only loan production dropped nearly 25% in 1Q. Meanwhile, the share of IOs originated in areas vulnerable to storms is increasing. (Includes data chart.)

Nine of the top 10 ARM lenders reduced production in the first quarter. Overall, ARM volume fell 20.3%. (Includes data chart.)

Velocity issues unrated MBS; non-QM lenders loosen guidelines; Caliber settles with NYAG on loan mods; EasyKnock raises capital.

The lender took millions of dollars in reserves for potential buybacks and litigation involving the bank’s now shuttered non-QM program.

After taking a couple of months off from originating mortgages, Impac is back. However, the lender is avoiding non-QMs for the moment.

The re-proposed capital requirements for the GSEs could prompt a shift in activity toward the non-agency market. The devil is in the details.

CFPB issues proposed rule for LIBOR transition; non-agency forbearance rate declines; Chimera turns to alternative financing; Invictus launches commercial lender; SFA shifts date for annual conference.

Among the lenders currently offering non-QMs, underwriting standards are tighter and interest rates on the loans are higher than earlier in the year. Industry participants are optimistic that the sector will rebound, eventually.

Beginning in March, the GSEs loosened certain appraisal standards due to complications from the coronavirus. A number of non-agency lenders are following the GSEs’ lead.