Average credit scores, DTI ratios and LTV ratios haven’t loosened much in the past two years as expanded-credit MBS issuance soared. The investment-property share of MBS issuance is also on the rise. (Includes three data charts.)

The CFPB is considering eliminating the DTI ratio metric when determining the QM status of a mortgage and instead basing the designation on the interest rate. The proposal was met with mixed reactions.

Fix-and-flip loans differ in many ways from traditional mortgages. The loans are often exempt from various regulations.

Invictus is set to issue its largest expanded-credit MBS yet. Angel Oak and Caliber also have deals in the market.

Velocity completes IPO; losses on Angel Oak’s MBS temporary; Radian sells Clayton; Provident Bank acquires non-agency warehouse lender; GSF Mortgage launches jumbo product; Customers Bank takes a loss.

Issuance of non-agency MBS increased by nearly 50% on an annual basis in 2019, largely due to expanded-credit mortgages. (Includes data chart.)

At least eight expanded-credit MBS rated by DBRS Morningstar suffered losses in the second half of 2019. Investors, though, were protected due to high credit enhancement levels.

After a lull in December, issuers are bringing non-agency MBS to the market. Redwood Trust is planning a deal with seasoned mortgages while New Residential has an expanded-credit MBS.

LendSure launches bridge loan product; Sprout hires Ron Krueger as senior vice president; DBRS Morningstar outlines rating criteria for reverse mortgages; Fitch upgrades its servicer ratings of BSI Financial Services.

Expanded-credit MBS issuance looks likely to increase again in 2020, but not at the exponential growth rate seen since the sector emerged in 2015. A major variable is how the CFPB will address the QM patch.