After sharply limiting its aggregation due to volatility from the coronavirus, Redwood has re-entered the jumbo MBS market. Meanwhile, issuers of expanded-credit deals continue to stock their MBS with older loans.

Non-agency forbearance increases; SFVegas delayed to late July; Maxex offering preferred pricing on jumbos to certain lenders; NewRez non-QM VP opening; PCMA hires VP of direct channel originations.

The Consumer Financial Protection Bureau late this week issued two final rules for qualified mortgages: One replaces the 43% debt-to-income ratio with a pricing threshold and the other creates a seasoned QM category.

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.

Among a group of 15 lenders, IO production increased by 22% in the third quarter and by 60% at the nine-month mark. (Includes data chart.)

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.)

After issuing $1.0 billion of expanded-credit MBS during the third quarter, Annaly is working to acquire more non-QMs. The REIT reported strong returns from the MBS.

MFA Financial took losses on non-QM sales earlier this year and obtained costly financing amid margin calls. Now the REIT is generating profits and paying off debt thanks to two MBS issuances in recent months.

Impac resumed originations of non-QMs in October with a whimper rather than a bang. The lender is generating better returns from GSE mortgages.