First Republic Bank plans to shift to originating loans for sale into the secondary market.

However, a Goldman strategist said residential lending should avoid the pain that will be more pronounced in other sectors.

Expanded-credit MBS issuance increased by more than 75% in the first quarter of 2023. Invictus Capital Partners was the top issuer in the early months. (Includes three data charts.)

While real estate lending might not feel the brunt of a possible credit squeeze, products like jumbo mortgages could still face challenges. There are signs that banks have reduced their appetite for the loans.

Conforming jumbos, cash-out refinances and mortgages for investment properties and second homes are becoming less prevalent in deliveries to the government-sponsored enterprises. (Includes data chart.)

Bank statement, debt servicing credit ratio and home-equity line of credit products are bringing new value to originators, according to LoanNEX.

Players in the cryptocurrency-backed mortgage space still see optimism for the future even as the “crypto winter” moves into spring.

After a lull around the end of the first quarter, a number of expanded-credit MBS have hit the market, with more deals planned.

The volatility in interest rates, elevated housing prices and a lag in rental growth numbers are all prompting more investors to lock in loans with debt service coverage ratios below 1.0.

CPFB revises methodology for APOR; Fitch downgrades PacWest’s CRT; LendingOne taps ex-Sprout vice president for TPO business; DBRS adds new due diligence provider to “acceptable” list.