The volatility in interest rates, elevated housing prices and a lag in rental growth numbers are all prompting more investors to lock in loans with debt service coverage ratios below 1.0.

CPFB revises methodology for APOR; Fitch downgrades PacWest’s CRT; LendingOne taps ex-Sprout vice president for TPO business; DBRS adds new due diligence provider to “acceptable” list.

Issuance doubled compared with the fourth quarter of 2022. However, issuance slowed considerably in March following the failures of two regional banks. (Includes data chart.)

Delinquencies and modifications of non-qualified mortgages increased again in February, continuing a trend that started over the summer.

The CFPB has established new reporting requirements on loans for small businesses. Investment-property loans already reported under HMDA are exempt from the new standards.

First Republic’s servicer rating downgraded; Moon Mortgage offering jumbos with qualification based on cryptocurrency holdings; DBRS adds due diligence provider to “acceptable” list; Utah loosens age requirement for proprietary reverse mortgages.

The bank has been addressing fraud in its non-QM program since late 2019. The cleanup has involved fines, settlements, buybacks and the departure of more than 100 officers and employees.

Velocity Financial’s focus on non-agency business-purpose loans paid off in 2022. The lender’s income increased even as originations declined.

Altisource Asset Management is now originating bridge loans and non-agency mortgages for investment properties. The firm has agreements to sell whole loans to insurance companies and asset managers.

The non-QM share of Impac’s originations increased significantly in 2022. Still, its margins declined due to competition among lenders for non-QMs and weak demand for the loans in the secondary market.