While the retail channel remained the predominant source for jumbo lending, originations through the channel fell 9.0% from the second to the third quarter. Correspondents and brokers gained share. (Includes data table.)

Originations of adjustable-rate mortgages stayed flat in the third quarter while total first-lien production declined somewhat. (Includes data table.)

Select Portfolio Servicing continued to dominate the sector in the second quarter. (Includes data chart.)

Renewed calls for standardization come with potential challenges unique to the non-QM sector.

Lenders originating ARMs weren’t able to buck the broader trend of declining originations in the fourth quarter of 2022. Still, on an annual basis, the ARM share nearly doubled in 2022 thanks to rising interest rates. (Includes data chart.)

Holdings of first-lien mortgages at banks and thrifts increased by nearly 10% in 2022. First Republic Bank stood out with a nearly 30% increase. (Includes data chart.)

Among a group of 20 prominent nonprime servicers, portfolio balances increased by 0.3% during the fourth quarter of 2022. Prepayment rates on non-QMs are low and delinquencies are rising.

Jumbo servicing portfolios at many of the largest firms in the sector increased in both the fourth quarter and on an annual basis. Low prepayment rates helped to keep loans in portfolio. (Includes data chart.)

Issuance of prime non-agency MBS nearly ground to a halt during the fourth quarter. For the full year, activity was down almost 60%. (Includes three data charts.)

Conforming jumbos took the biggest hit in the fourth quarter as the volume of business Fannie Mae and Freddie Mac conduct in various noncore categories decreased.