The share of non-QMs that are delinquent or in a loan modification declined again in September. The impairment rate in the sector remains high, though loan holders are optimistic.

Loan limit projections for 2021; non-agency forbearance declines; Sterling takes losses on non-QM buybacks; Anworth's MBS plans whither; Griffin launches jumbo product; Citadel offering three-month bank statement loans; BBVA offering Prosper-powered HELOC.

New Residential ranked sixth among expanded-credit originators in 2019. The lender has been slower than other major players to restart non-QM lending due to a surge in agency refi business.

Western Alliance plans to offer warehouse lines of credit to lenders that work with Galton then retain some of the lenders’ originations.

Some $1.64 billion of expanded-credit MBS and $1.06 billion of prime non-agency MBS hit the market in the past two weeks. The expanded-credit deals were stocked with older loans.

CFPB officially extends QM patch; forbearance rate for non-agency mortgages increases; virtual forum on non-QMs.

The share of mortgages for investment properties in expanded-credit MBS increased during the third quarter along with average credit scores. The age of loans going into securitized deals is also rising. (Includes three data charts.)

Originating non-QMs didn’t work out so well for Sterling Bank. After finding compliance issues, the bank ended its non-QM program and started to repurchase loans sold into MBS.

Imperial Fund, an affiliate of A&D Mortgage, issued its first non-QM MBS this week. Loans in the deal are concentrated in Florida and more than 15% went to foreign nationals or non-resident aliens.

Galton has issued more than $1.0 billion in expanded-credit MBS since the start of 2019. Western Alliance will place Galton within its warehouse lending unit.