Lenders originating ARMs weren’t able to buck the broader trend of declining originations in the fourth quarter of 2022. Still, on an annual basis, the ARM share nearly doubled in 2022 thanks to rising interest rates. (Includes data chart.)

The bank has been addressing fraud in its non-QM program since late 2019. The cleanup has involved fines, settlements, buybacks and the departure of more than 100 officers and employees.

Velocity Financial’s focus on non-agency business-purpose loans paid off in 2022. The lender’s income increased even as originations declined.

Altisource Asset Management is now originating bridge loans and non-agency mortgages for investment properties. The firm has agreements to sell whole loans to insurance companies and asset managers.

The non-QM share of Impac’s originations increased significantly in 2022. Still, its margins declined due to competition among lenders for non-QMs and weak demand for the loans in the secondary market.

Non-agency MBS issuance slows; Fund That Flip forms REIT for bridge loans; Arc Home hires Sprout’s former chief production officer.

Rising interest rates and fickle demand in the secondary market made it difficult to originate non-QMs in 2022. The hope among industry participants is that volatility will recede.

Non-QM lenders and MBS issuers are making adjustments amid a volatile secondary market. Issues include timing for MBS issuance and competition for new production.

Impac’s CashCall unit will provide leads on non-QMs to mortgage brokers. The lender is also closing its third-party originations unit.

The REIT stopped acquiring non-QMs during the fourth quarter as interest rates fluctuated and demand in the secondary market waned.