Neuberger Berman issued a non-QM MBS this week, ending a lull in issuance that started in late February due to volatility from the coronavirus. Other issuers also plan to return to the market.

Profit at Velocity Financial declined in the first quarter and half the staff was temporarily furloughed. Still, the firm plans to issue an MBS in the coming weeks and get back on track.

The stall in issuance of non-QM MBS could be close to an end. Two firms plan to issue deals, though the exact timing isn’t clear.

The resumption of non-agency MBS deals backed by newly originated loans came from an unexpected source: a reverse mortgage lender.

Redwood MBS could be downgraded due to stop-advance feature; Moody’s assesses Finance of America Mortgage; non-QM lender PCMA signs lease for new headquarters.

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.

Issuance of non-agency MBS fell 8.2% in the first quarter, with the decline driven by the expanded-credit sector. The non-agency MBS market essentially shut down in March due to fallout from the coronavirus. (Includes data chart.)

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.