Happy with its returns from non-QM lending and MBS issuance from its investment in LendSure, Ellington Financial may invest in other originators.

Lenders want the CFPB to provide a six-month overlap between new QM standards coming into effect and the expiration of the “patch.”

Velocity, which focuses on loans for investment properties, is working on obtaining warehouse financing without mark-to-market provisions.

Non-agency forbearance increases; prices for luxury homes fluctuate; PCMA sees strong interest in new non-QMs; Angel Oak and Citadel offer loans underwritten with 12 months of bank statements; former Redwood Trust president moves on to rent-to-own provider.

After a pause for about four months, Citadel Servicing and Verus Mortgage Capital have re-entered the non-qualified mortgage market. But Citadel is no longer offering non-QMs based on one-month bank statements.

GSE business in various noncore categories increased during the second quarter as lenders turned their focus to agency business. (Includes data chart.)

The REIT’s aggregation of non-agency mortgages typically dwarfs its business-purpose lending activity, but that wasn’t the case in the second quarter of 2020.

An affiliate of Bayview Asset Management entered the prime non-agency MBS market and non-QM MBS issuers continue to stock deals with seasoned loans.

Share of non-agency mortgages in forbearance down slightly; Impac takes a loss in 2Q.

Demand for non-QMs in the secondary market is helping lenders loosen underwriting standards and drive down interest rates for new production. Five non-QM MBS hit the market in the past two weeks.