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.)

Lenders can use the QM standards drafted in the waning days of the Trump administration. But there’s no certainty new leadership at the CFPB will leave them as they are.

MFA Financial made an investment in a non-QM lender, Starwood Property Trust is closing in on a similar move, and Western Asset Mortgage Capital expanded its purchase agreements.

Nonprime servicing portfolios fell by 0.7% in 4Q20 and 4.1% year-over-year. But Select Portfolio Servicing boosted its receivables during the year. (Includes data chart.)

A number of lenders have introduced new non-agency products with looser underwriting guidelines in recent weeks. Rocket and United Wholesale offered jumbos and Deephaven widened expanded-credit products.

Issuers of non-agency MBS brought four jumbo deals to the market this week. Some shops closed securitizations with esoteric collateral.

Ellington Financial and Credit Suisse are set to issue the first MBS with newly-originated non-QMs since the market was disrupted in March 2020.