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.

Non-agency MBS issuance slows; Fund That Flip forms REIT for bridge loans; Arc Home hires Sprout’s former chief production officer.

Rising interest rates and fickle demand in the secondary market made it difficult to originate non-QMs in 2022. The hope among industry participants is that volatility will recede.

Non-QM lenders and MBS issuers are making adjustments amid a volatile secondary market. Issues include timing for MBS issuance and competition for new production.

Impac’s CashCall unit will provide leads on non-QMs to mortgage brokers. The lender is also closing its third-party originations unit.

MISMO is working to update data fields established by the American Securitization Forum in 2009 for use in the non-agency MBS market.

Non-agency MBS issuance update; PennyMac launches jumbo product; Fitch affirms A&D’s servicer rating, Redwood increases staff.

At the end of 2022, Redwood had more capital dedicated to its business-purpose lending efforts than to aggregation of jumbo mortgages. Officials at the REIT expect the business-purpose segment to flourish even if there’s a recession.

Rising interest rates prompted a loss of $231.6 million at MFA Financial in 2022. The losses slowed in the fourth quarter, at “only” $6.7 million, helped by business-purpose lending operations.

Two new issuers are offering expanded-credit MBS, there’s a securitization backed by newly-originated second liens and the jumbo MBS market is showing more signs of life.