Carrington Mortgage Services said one of the changes included lowering the eligibility threshold for an alternative-documentation borrower to a FICO score of 550.

Mbanc started a private client lending platform to fill an overlooked part of the non-QM market.

The number of self-employed workers is rising, helping boost originations of bank statement and investor loans.

Many expanded-credit MBS are performing better than Fitch Ratings’ initial expectations. The rating service also completed a review of ratings on jumbo MBS, resulting in more limited upgrade activity.

A growing non-QM MBS sector might be hamstrung by a lack of uniform underwriting and a variety of smaller originators.

With stricter condo lending requirements at the government-sponsored enterprises, more projects may be considered non-warrantable, pushing more business to the non-agency side of the market.

Redwood Trust posted another quarter of losses in the second quarter tied to its efforts to wind down legacy assets, including multifamily bridge loans investments.

Some debt service coverage ratio loan borrowers are deliberately going delinquent while they renovate a property to improve its long-term rental performance.

Poor quality appraisals and weak due diligence controls are leading to growing concern about appraisal values for non-QMs.

More extensive rehab projects and growing investor demand have pushed some lenders to consider getting more lenient with some standards for residential transition loans.