Chase’s top officials shed light this week on how First Republic Bank’s high-quality mortgage assets and affluent borrowers fit right into the megabank’s wheelhouse.

Non-agency higher-priced mortgages are a proxy for subprime loans.

While business is slow in most of the mortgage market, some non-QM lenders are anticipating a busy second half of 2023.

For years, Wells Fargo and JPMorgan Chase were the largest originators of jumbo mortgages.

The reason the loans are considered nonprime: a lack of income and employment verification.

Rising interest rates and tightening of credit standards from banks caused a slowdown in jumbo lending in the first quarter of 2023. First Republic Bank was the top producer in the sector, followed by Wells Fargo. (Includes data chart.)

Deephaven Mortgage and Arc Home are looking to add to their operations and sales teams to take advantage of upcoming opportunities in the non-QM space.

Originations of higher-priced mortgages slightly increased last year, with many loans produced by CDFIs and lenders who specialize in mobile and manufactured homes. (Includes two data charts.)

Real estate investment trusts are facing adversity in the non-qualified mortgage space due to high interest rates and low originations.

Income spiked at MFA Financial in the first quarter of 2023. Officials attributed the improvement to prudent risk management maneuvers.