Citadel posted record origination volume for the company in the second quarter, with help from products beyond the typical non-qualified mortgage offerings. Citadel also stands out by servicing its originations and largely avoiding contributing to non-agency MBS.

Redwood’s margins from non-agency mortgage activity declined in the second quarter and aren’t expected to increase much for the rest of the year, according to officials at the REIT. Redwood also has changed its MBS issuance strategy, putting seasoned mortgages into deals.

A number of correspondent aggregators at a recent conference provided tips on how to convince loan originators to offer non-QMs.

The CFPB should allow compensating factors to be considered in lieu of a strict 43% DTI ratio limit for determining QM status, according to two separate proposals.

The Alternative Reference Rate Committee detailed how a modified SOFR could be used in place of LIBOR for new ARM originations. It also proposed fallback language to move new ARMs away from LIBOR.

A new wholesale lender is focusing on originating non-QMs for affluent borrowers. Its founders include subprime alum and tech geeks.

A variety of lenders loosened underwriting standards for non-QMs. Also, several new players have entered the market.