Nine of the top 10 ARM lenders reduced production in the first quarter. Overall, ARM volume fell 20.3%. (Includes data chart.)

Velocity issues unrated MBS; non-QM lenders loosen guidelines; Caliber settles with NYAG on loan mods; EasyKnock raises capital.

The lender took millions of dollars in reserves for potential buybacks and litigation involving the bank’s now shuttered non-QM program.

After taking a couple of months off from originating mortgages, Impac is back. However, the lender is avoiding non-QMs for the moment.

The re-proposed capital requirements for the GSEs could prompt a shift in activity toward the non-agency market. The devil is in the details.

CFPB issues proposed rule for LIBOR transition; non-agency forbearance rate declines; Chimera turns to alternative financing; Invictus launches commercial lender; SFA shifts date for annual conference.

Among the lenders currently offering non-QMs, underwriting standards are tighter and interest rates on the loans are higher than earlier in the year. Industry participants are optimistic that the sector will rebound, eventually.

Beginning in March, the GSEs loosened certain appraisal standards due to complications from the coronavirus. A number of non-agency lenders are following the GSEs’ lead.

Redwood reduces both debt and the share of its debt subject to potential margin calls; Sprout launches new jumbo product.

The jumbo market was humming along at the start of the year until volatility from the coronavirus disrupted lending in March. Originations of jumbos declined sharply and the sector lost market share. (Includes data chart.)