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

The ARM and IO share of loans in expanded-credit MBS increased in the second quarter. The volume of loans produced through the correspondent channel and for investor properties declined. (Includes three data charts.)

Only two non-agency MBS hit the market in the past two weeks: a non-QM deal from PIMCO and a deal from Starwood Property.

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

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.

A lack of standardized reporting is causing problems for non-agency MBS investors. In one non-QM MBS, research firm dv01 found 233 loans that had been modified while the trustee reported only 41 mods.

After increasing in March, April and May, the delinquency rate on securitized non-QMs declined in June. Now servicers are grappling with forbearance plans that are expiring.

MFA and Western Asset Management took losses on non-QMs in 2Q. Anworth is in a holding pattern and Starwood is buying non-QMs at a discount.