Eleven expanded-credit MBS have been introduced since June 15, with a total unpaid principal balance of $3.4 billion.

A recent cash infusion will help MFA Financial revive its first ever non-QM MBS. The deal had been put on hold because of the pandemic.

Sales of non-QMs at distressed prices accounted for a large share of the nearly $65 million loss Impac took in the first quarter.

Velocity issues unrated MBS; non-QM lenders loosen guidelines; Caliber settles with NYAG on loan mods; EasyKnock raises capital.

The lender took millions of dollars in reserves for potential buybacks and litigation involving the bank’s now shuttered non-QM program.

The impairment rate on non-QM MBS increased by more than five times in April as borrowers felt the side effects of the coronavirus. The worst performing non-QM loans were those to self-employed borrowers.

Four deals were brought to the market in the past two weeks and more are in the works. However, issuance will slow as the recent activity was backed by loans originated before non-QM lenders halted production.

After taking a couple of months off from originating mortgages, Impac is back. However, the lender is avoiding non-QMs for the moment.

Originations fell by 20% as the market was disrupted in March by the coronavirus. Most of the major lenders suspended production during the month, ending the quarter with declines. (Includes data chart.)

After issuance ground to a halt in March, five non-QM MBS deals came to the market in May and more are on the way. Transactions have been stocked with slightly seasoned mortgages.