The mortgage market remained unsettled as the coronavirus damaged the U.S. economy and lenders weighed their options. The Fed came to the rescue with liquidity measures but fears regarding nonbanks persist.

The bulk of lenders operating in the non-QM market have suspended production due to a lack of demand in the secondary market. There are some signs that originations could resume within weeks.

Some non-QM lenders are facing pricing issues as demand in the secondary market fluctuates. At least one wholesale lender has suspended originations.

The creation of the qualified-mortgage patch was “unfair” but necessary to prop up originations, according to former CFPB officials who were involved in crafting the temporary rule.

In more troubles for Sterling Bank and Trust, the lender’s residential mortgage operations are now under investigation by the Department of Justice.

DoubleLine Capital has picked up a minority stake in OptionWide Financial, while MFA Financial has put its might behind five non-qualified-mortgage lenders.

The future looks particularly bright these days for non-qualified-mortgage shops looking to sell or go public. One lender that can take down the for-sale sign is Citadel Servicing Corp.

Loan applications took a dive last week but for the most part lenders remain optimistic about the months ahead. Meanwhile, a fintech lender plans to buy a bank, an industry first.

Bye bye to LIBOR for Fannie and Freddie / What do Non-QM CEOs Earn?

The recent IPO of nonprime lender Velocity Financial should pave the way for other like-minded deals. Right? But not so fast. The stock market can be an unforgiving place.