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.

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.