Lenders tightened underwriting standards on non-agency mortgages in March and April, opting to focus on agency refis. But when that business declines, non-agency lending could rebound.

Three issuers of jumbo MBS offered deals in the past two weeks, including the first post-2010 issuance from Morgan Stanley.

Select Portfolio Servicing gained ground during the third quarter but Shellpoint Mortgage Servicing remained the top servicer of non-agency MBS. (Includes data chart.)

Three deals hit the market late last week. Chase issued a jumbo MBS backed by fresh loans while two other issuers packaged investment-property mortgages.

GSE loan limits increase by 7.4% for 2021; non-agency forbearance rises.

Jumbo lending remained flat in the third quarter. However, the sector lost market share as lenders focused on GSE refis. Chase overtook Wells as the top jumbo producer. (Includes data chart.)

Chimera is generating attractive returns by packaging jumbos, GSE-eligible investment-property mortgages and seasoned loans into non-agency MBS. The REIT continues to avoid non-QMs.

Loan limit projections for 2021; non-agency forbearance declines; Sterling takes losses on non-QM buybacks; Anworth's MBS plans whither; Griffin launches jumbo product; Citadel offering three-month bank statement loans; BBVA offering Prosper-powered HELOC.

First Republic Bank increased its originations by 15.8% in the third quarter and Flagstar Bank posted a 33.3% increase in jumbo lending compared to 2Q20.

Redwood locked $2.1 billion of jumbos during the third quarter though it only acquired $176 million. The REIT is issuing MBS and selling loans to banks.