Redwood Trust’s profits declined from the first to the second quarter, while loan locks and funding reached new highs.

Non-QM, home equity originations and business-purpose loans from Newrez and Genesis Capital helped Rithm in the second quarter.

Morningstar DBRS upgraded the outlook for its mortgage originator ranking of non-QM lender Acra Lending after a review that found the company has remained profitable for the last three years.

New research shows that, contrary to some critics, debt-to-income ratios are an effective predictor of a borrower’s ability to repay.

The product allows for debt service coverage ratio below 0.75, while many DSCR lenders require a ratio of at least 1.0.

The funding will go toward Faes & Co.’s F2 Finance, a fix-and-flip lender based in the U.S.

Early trends have been mixed, but more private credit funding and a potential rate cut should help boost short-term rental lending this year.

Experts speaking at an event hosted by the Urban Institute said that CDFIs are developing novel ways to help more underserved borrowers achieve homeownership.

The business-purpose lender launched a broker channel and expects to expand its wholesale operations in the years to come.

It remains a challenge to finance accessory dwelling units through traditional mortgage products. A new financing option from an ADU builder looks to overcome that challenge.