A handful of lenders continue to originate non-qualified mortgages while the major players in the market pause production.

Velocity Financial was increasing originations and income, then the coronavirus hit, halting issuance of a planned MBS and prompting the need for additional capital.

Investments in non-agency assets were offloaded by Annaly and MFA. Some of the loans sold by MFA were likely meant for a non-QM MBS that didn’t close in March.

Fitch proposes changes to MBS rating criteria; Ocwen faces NYSE delisting; Nationwide Equities launches non-agency reverse mortgage.

The major producers of non-QMs suspended originations in March and, with the market paused, layoffs have started.

New Residential, Redwood and Two Harbors sold non-agency MBS holdings as REITs were hit with a surge of margin calls from their lenders. Efforts by the federal government to prop up the mortgage market haven’t done much for non-agency players.

As the financial impact of the coronavirus spreads, some lenders have suspended non-QM originations and others have repriced products.

After a surge in February, the issuance of non-agency MBS has all but ground to a halt due to financial turmoil caused by the coronavirus.

More trouble for Sterling: DOJ is now investigating the bank’s non-qualified-mortgage origination practices.

Figure packaged a $149 million ABS backed by home-equity lines of credit that were originated and securitized using blockchain technology.