The adjustable-rate mortgage share of total production increased slightly in the third quarter, even though originations of the product drastically declined. (Includes data chart.)

There are still areas in the country where the jumbo market can grow, according to industry analysts. The only concern is if home prices fall as drastically in 2023 as some economists are predicting.

Western Asset Mortgage Capital is in the middle of a strategic review that could result in a sale or merger of the real estate investment trust.

It’s been a tough year for non-QM shops as lenders adjust to a new rate-driven reality. Company closings appear to be picking up, but some believe the worst of it might be over. The latest to cease originations: Athas.

Demand for non-QMs in the secondary market remains weak. Investors are concerned about the prepayment profile of the loans, among other issues.

Activity at the GSEs is moving away from areas where the non-agency market could compete with Fannie Mae and Freddie Mac. Cash-out refi business could be the next category to take a hit as FHFA has directed the GSEs to increase upfront pricing. (Includes data chart.)

First Republic Bank isn’t increasing its interest rates for jumbo mortgages at the same pace that the Fed is increasing interest rates, leading to lower margins for the bank.

Redwood acquisitions of jumbo mortgages declined by more than 70% on a sequential basis in the third quarter. Officials at the REIT suggested that Redwood will continue to limit loan acquisitions until market dynamics improve.

Non-QM impairment rate increases in September; Angel Oak launches ETF with focus on non-agency MBS investments; new correspondent lender focusing on non-QMs; Go Mortgage offers non-QM construction loan.

Debt service coverage ratio loans for investment properties are starting to look more risky as the Fed works to address inflation. Still, activity in the sector is increasing.