More trouble for Sterling: DOJ is now investigating the bank’s non-qualified-mortgage origination practices.

A focus on refis of agency loans prompted a decline in non-QM lending at Impac in 2019. The lender will focus on non-QMs (again) this year.

Toorak prices securitization backed by bridge loans; Redwood extends a warehouse line; Velocity provides a financial update; sales of luxury homes rose in 4Q19; PCMA launches product for investment properties.

Having recently raised $8.0 million in capital, Quontic Bank plans to hold more mortgages in portfolio.

The expanded-credit sector lost market share in 2019 as lower interest rates helped propel refinances of conforming mortgages. Citi was the top lender in the space. (Includes data chart.)

Presale reports for three deals backed by new originations were published this week. However, there’s uncertainty about how they will be received by investors due to market volatility related to the coronavirus.

Investors that are active in the market for non-QMs can’t seem to get enough of the loans or MBS. Meanwhile, large firms continue to avoid the sector due to concerns about liabilities and the lack of uniformity.

Redwood’s mortgage aggregation activity is increasing as banks apparently can’t handle all of the new volume tied to a decline in interest rates.

Despite regulatory talk about increasing efforts to help the non-agency market compete with the GSEs, the volume of noncore loans sold to Fannie and Freddie increased in 2019, led by mortgages with DTIs greater than 43%. (Includes data chart.)

MFA Financial sharply boosted its acquisitions of non-QMs in the fourth quarter. It has investments in five lenders and plans to issue MBS.