As interest rates declined in 2020, the ARM share of jumbo originations plummeted. Lenders also got more lenient with DTI ratios, while average credit scores and LTV ratios tightened somewhat.

Lock volume for planned acquisitions of jumbo mortgages declined in the second quarter at Redwood Trust. Still, officials are optimistic about growth in the non-agency market.

The jumbo servicing market inched up in the first quarter of 2021. The two largest banks in the sector reduced their balances while others expanded their portfolios. (Includes data chart.)

After temporarily suspending originations during the pandemic, wholesaler ClearEdge Lending is ramping up production of non-agency mortgages.

Bank and thrift holdings of first liens declined for a second consecutive quarter, after years of increases. Among the largest banks, trends varied. (Includes data chart.)

Trade groups representing lenders are urging regulators to maintain the link between QMs and loans exempt from mandatory risk retention.

Jumbo correspondent lending continued to make its comeback in the first quarter of 2021 after a sharp drop in volume tied to the coronavirus. Trends were mixed among lenders that focus on the retail channel. (Includes data chart.)

Chase issued its fifth large prime non-agency MBS of the year, along with a number of more traditionally sized deals. United Wholesale Mortgage is also set to issue its first deal.

The top three servicers of non-agency MBS issued during the first quarter of 2021 handled nearly 70% of the market. Shellpoint, the top-ranked firm, alone had a 41% share.

Jumbos accounted for 9.2% of total first-lien originations in the first quarter of 2021, a slight improvement from 4Q20, but nowhere close to pre-pandemic levels. (Includes data chart.)