Originations of non-agency jumbo mortgages declined in the fourth quarter as well as full year 2018, according to an Inside Nonconforming Markets analysis. The sector also lost market share with lenders noting weak demand. [Includes one data chart]

Redwood Trust announced last week that it plans to acquire 5 Arches, an originator and asset manager of business-purpose real estate loans. Redwood acquired a 20 percent stake in the lender last year with an option to fully ac-quire the Irvine, CA-based company.

Mortgages originated with a balance between $10.0 million and $20.0 million have surged in recent years, according to an analysis by CoreLogic.

The expansion-minded New Residential Investment Corp., New York, seems to have a thing for self-employed borrowers: Most of its recent non-agency MBS deals are stuffed with the product.

Originations of non-agency mortgages have taken a hit since the ability-to-repay rule came into effect, according to an analysis published by the Consumer Financial Protection Bureau last week.

To better compete with banks, several prominent nonbank lenders recently launched new non-agency products, including prime jumbo mortgages and non-qualified mortgages.

Angel Oak Companies set company records for originations of non-qualified mortgages in 2018 and officials expect more growth this year. “Non-QM is booming, we’re going to set an all-time record in December and we’ve set records each quarter in 2018,” said Tom Hutchens, senior vice president of sales and marketing at Angel Oak Mortgage Solutions. “We’re continuing to see more people participate in the market, which is a great thing.” Through the first three quarters of 2018, Angel Oak ...

Some self-employed workers are missing out on mortgages because of harsh standards included in the Consumer Financial Protection Bureau’s ability-to-repay rule, according to analysts at the Housing Finance Policy Center. “The mortgage market is not adequately meeting the needs of self-employed households,” the analysts said. The HFPC noted that in 2016, about 8.5 percent of U.S. households were headed by a self-employed person and 3.4 percent were salaried but earned some ...

Varde Partners, which four years ago purchased fledgling nonprime lender Deephaven Mortgage, Charlotte, NC, is now contemplating selling the company, industry officials who claim to have knowledge of the matter told Inside Mortgage Finance this week.

Issuance volume and lending practices in the prime non-agency mortgage-backed security market in 2019 will be linked in several ways to the government-sponsored enterprises, according to industry analysts. Volume projections for prime non-agency MBS depend on pricing differences between non-agency execution and delivery of loans to Fannie Mae and Freddie Mac. Non-agency lenders are also expected to increasingly use tools developed by the GSEs. “We expect robust issuance from ...