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.

Bayview Asset Management and Verus Mortgage Capital separately started marketing non-agency MBS in the days after Hurricane Ian made landfall. Rating services that assessed the deals differed in their focus on potential damage from the hurricane.

An affiliate of Bayview Asset Management is set to issue its first jumbo MBS since December. Loans in the deal have seasoned for an average of 4.5 months and were sourced from a number of lenders.

Sterling Bank and Trust paid $6 million to settle charges from the OCC regarding a now-shuttered non-QM program. Investigations by the DOJ and SEC are ongoing.

Moon Mortgage plans to offer loans with underwriting based on crypto holdings. Both purchase mortgages and investment-property loans are planned, with borrowers needing to post 100% of collateral.

Redwood offers some early insight on third quarter performance; Fitch upgrades assessment of Carrington Mortgage; LauraMac launches loan acquisition system; Toorak tops $10 billion in funding since inception in 2016.

Borrowers and lenders increased their emphasis on ARMs in the second quarter as interest rates continued to spike. The loans accounted for more than 12% of total originations during that time. (Includes data chart.)

Angel Oak Companies is grappling with weak demand for non-QMs. One of the firm’s lending units laid off about 20% of its staff last week and Angel Oak’s REIT unexpectedly replaced its CEO this week.

The mortgage exchange will now facilitate originations and sales of various types of non-QMs, with “some of the industry’s most generous guidelines” for the products.