The CFPB likely will propose revisions to QM standards in May. Feedback from non-agency participants could be minimized as the market for non-QMs collapsed recently.

A cap imposed by the Fed on Wells’ portfolio was a major factor in its decision to stop originating jumbos through correspondents.

Following in the footsteps of Wells, a handful of correspondent aggregators have suspended originations of jumbo mortgages. Underwriting standards for the loans also have tightened.

A handful of lenders continue to originate non-qualified mortgages while the major players in the market pause production.

First Republic Bank doesn’t plan to chase market share even as other jumbo lenders tighten underwriting standards.

Velocity Financial was increasing originations and income, then the coronavirus hit, halting issuance of a planned MBS and prompting the need for additional capital.

Fitch proposes changes to MBS rating criteria; Ocwen faces NYSE delisting; Nationwide Equities launches non-agency reverse mortgage.

The major producers of non-QMs suspended originations in March and, with the market paused, layoffs have started.

The top five producers of jumbos continue to offer the mortgages. The production picture is less clear at nonbanks, which don’t have portfolio capacity.

Originations of both ARMs and IOs increased in the fourth quarter and in all of 2019. Growth among IO lenders even outpaced the increase in total first-lien originations. (Includes two data charts.)