Non-agency loans account for about 30% of all residential mortgages outstanding and, unlike with servicing for the GSEs or government-insured mortgages, there’s no standardization in how servicers will respond to borrowers facing financial difficulties tied to the coronavirus.

Nearly all the firms in a group of 30 servicers increased their jumbo portfolio in 2019. Chase and Truist were the only ones to see a decrease. (Includes data chart.)

Banks and thrifts increased their holdings of residential first liens by 4.1% in 2019. Among the top 10 banks, three reduced their portfolios. (Includes data chart.)

Having recently raised $8.0 million in capital, Quontic Bank plans to hold more mortgages in portfolio.

MFA Financial sharply boosted its acquisitions of non-QMs in the fourth quarter. It has investments in five lenders and plans to issue MBS.

There are no easy solutions as servicers work to move non-agency ARMs from LIBOR to a different reference rate.

Bank of America retained 94% of its mortgage originations in the fourth quarter of 2019, a much higher retention rate than other big banks. Officials at the bank said BofA’s loans offer better yields than MBS.

First-lien holdings increased in the third quarter but Chase stood out among big banks as it sold mortgages and acquired MBS. First Republic slowed its mortgage sales and boosted its portfolio. (Includes data chart.)

Several borrowers are opting for mortgages with balances right at the conforming loan limit even though interest rates on jumbos are often lower. Relatively tight underwriting standards for jumbos look to be the cause.

The CFPB is considering whether to provide QM status to mortgages that didn’t miss payments in the early years after origination. The proposal has support from some lenders.