The DOJ continues to investigate issues involving a non-QM program Sterling Bank & Trust ended in 2019. Fallout from the program continues to cut into the bank’s profitability.
Changes are under consideration for determining which firms qualify as community development financial institutions. Under a current proposal, CDFIs would have to follow the CFPB’s ability-to-repay underwriting requirements.
Six expanded-credit MBS started marketing within the past two weeks and there are also offerings of prime jumbos, HELOCs and even a credit-risk transfer deal from Santander Bank.
There’s a new program focused solely on a borrower’s business bank statement and a second-lien offering where non-QM borrowers can take cash out without refinancing.
Delinquencies on non-QMs increase again; Altisource hires COO for non-agency effort; DBRS adds Verity Global Solutions as an acceptable due-diligence provider.
Non-agency MBS issuance perked up in early January as investor demand improved. Redwood Trust offered a jumbo MBS after a year-long lull in issuance and expanded-credit MBS issuers priced deals at tightening spreads.
The impairment rate on securitized non-QMs posted its largest one-month jump in November since the early days of the pandemic. Hurricane Ian was a factor.
In October, new standards for qualified mortgages took effect. It turns out that a provision in the final rule also applies to non-QMs, which could limit originations of loans where lenders look at only a small number of a borrower’s bank statements.
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