Redwood Trust scaled back its jumbo business in 2022 and doesn’t have plans for a significant expansion any time soon, even with Wells Fargo’s exit from the correspondent channel.

Rising interest rates and financial volatility battered the non-QM market in 2022. This year almost has to be better by default, according to industry participants.

Redwood suggested Wells Fargo's exit from the correspondent channel won't boost the REIT's fortunes in the near term.

Most of the non-agency MBS on offer within the past two weeks was stocked with mortgages for investment properties.

Changes are under consideration for determining which firms qualify as community development financial institutions. Under a current proposal, CDFIs would have to follow the CFPB’s ability-to-repay underwriting requirements.

Six expanded-credit MBS started marketing within the past two weeks and there are also offerings of prime jumbos, HELOCs and even a credit-risk transfer deal from Santander Bank.

Non-agency MBS issuance perked up in early January as investor demand improved. Redwood Trust offered a jumbo MBS after a year-long lull in issuance and expanded-credit MBS issuers priced deals at tightening spreads.

The impairment rate on securitized non-QMs posted its largest one-month jump in November since the early days of the pandemic. Hurricane Ian was a factor.

Nonprime REIT Angel Oak Mortgage is redoing some of its warehouse facilities, ending one line and increasing another. The goal: to buy time in a turbulent market.

Three of the four mortgage securitizations brought to the market this month include large proportions of investment-property loans.