Many expanded-credit MBS are performing better than Fitch Ratings’ initial expectations. The rating service also completed a review of ratings on jumbo MBS, resulting in more limited upgrade activity.
CrossCountry, Rocket boost conforming loans limits by 1.5%; UWM offers pricing incentive for jumbos; Castlelake and Redwood partner on first mortgage-backed security; CV3 on track for record originations.
Redwood Trust posted another quarter of losses in the second quarter tied to its efforts to wind down legacy assets, including multifamily bridge loans investments.
Issuance of expanded-credit mortgages declined by 4.8% on a quarterly basis in the second quarter, with purchase-mortgage volume down. (Includes three data charts.)
Some debt service coverage ratio loan borrowers are deliberately going delinquent while they renovate a property to improve its long-term rental performance.
More extensive rehab projects and growing investor demand have pushed some lenders to consider getting more lenient with some standards for residential transition loans.
Issuance of expanded-credit MBS increased a hefty 40.6% during the first quarter of 2026, with investment-property mortgages making up a big chunk of the total. (Includes three data tables.)