Investments in non-agency assets were offloaded by Annaly and MFA. Some of the loans sold by MFA were likely meant for a non-QM MBS that didn’t close in March.

The major producers of non-QMs suspended originations in March and, with the market paused, layoffs have started.

Non-agency loans account for about 30% of all residential mortgages outstanding and, unlike with servicing for the GSEs or government-insured mortgages, there’s no standardization in how servicers will respond to borrowers facing financial difficulties tied to the coronavirus.

As the financial impact of the coronavirus spreads, some lenders have suspended non-QM originations and others have repriced products.

After a surge in February, the issuance of non-agency MBS has all but ground to a halt due to financial turmoil caused by the coronavirus.

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.)