Nonprime servicing fell 1.9% during the third quarter. Prepayment rates are high and loan modifications have increased sharply this year.

The Consumer Financial Protection Bureau late this week issued two final rules for qualified mortgages: One replaces the 43% debt-to-income ratio with a pricing threshold and the other creates a seasoned QM category.

Forbearance offers depend on what’s allowed by non-agency MBS contracts, but some deals don’t address the issue at all.

Holdings increased by 1.2% in the third quarter. Wells’ boosted its portfolio while BofA reduced its holdings. (Includes data chart.)

Proposed standards by state regulators for nonbank servicers could cause problems for smaller firms, according to industry attorneys. But state regulators defended the proposal ahead of the comment deadline.

Select Portfolio Servicing gained ground during the third quarter but Shellpoint Mortgage Servicing remained the top servicer of non-agency MBS. (Includes data chart.)

Velocity resumed lending in September, predicting that production could hit pre-pandemic levels by the second quarter of 2021. The nonbank also took a large charge-off in the third quarter.

First Federal Community Bank of Bucyrus lost an appeal in a lawsuit involving the ATR standards for income documentation.

GSE loan limits increase by 7.4% for 2021; non-agency forbearance rises.

After issuing $1.0 billion of expanded-credit MBS during the third quarter, Annaly is working to acquire more non-QMs. The REIT reported strong returns from the MBS.