Goldman Sachs Mortgage Company has acquired more than $800 million of non-QMs this year and is set to issue a $291 million MBS.

Prime non-agency MBS issuance continued to flow in April, helped by some new players. Expanded-credit activity has been limited recently, with a downturn in demand.

Non-agency originations of higher-priced mortgages declined by 35% on an annual basis in 2020. The higher-priced designation is a proxy federal regulators use for subprime mortgages. (Includes two data charts.)

An effort by the CFPB to delay the end of the QM patch is causing uncertainty for non-agency lenders. A coalition of lenders and consumer advocates said the CFPB shouldn’t move forward with the proposal.

The impairment rate on securitized non-QMs hit 11.1% at the end of February. At the end of 2020, the rate stood at 10.3% after months of steady improvement.

AIG is set to issue a jumbo MBS with new production and MFA Financial has a non-QM deal with loans that have seasoned for 16 months. A surge of issuance also looks likely later this month.

The margins on originating non-QMs look good enough for Impac to resume production. The lender suffered a large loss in 2020, partially due to pandemic-driven volatility in the sector.

Six prime non-agency MBS with newer loans have hit the market along with two expanded-credit deals with older mortgages.

Provident drops jumbos from warehouse securitization; The Change Company hires former Angelo Gordon MD; FoAM wins bid for Benji.

Originations of expanded-credit mortgages fell by nearly 30% on an annual basis in 2020 and the sector lost market share. But lenders in the sector believe production will gradually recover. (Includes data chart.)