Rising interest rates and home price deceleration could limit fix-and-flip activity, though lenders active in the sector suggest that originations and profits remain strong.
Non-QM impairments decline after two-month increase; Balbec unit offers non-QM MBS with loans from Sprout; new CIO at Redwood; Velocity quickly packages business-purpose loans.
A lawsuit filed by New York’s attorney general against Donald Trump put a spotlight on valuation practices for commercial properties. Commercial MBS participants note that protections are in place regarding potentially inflated appraisals.
Hearings in Congress with the CEOs of seven megabanks stretched for more than nine hours across two days. The executives touted mortgage programs for minorities and listed their regulatory concerns.
The correspondent channel regained market share lost during the refi boom in the conventional-conforming sector. The retail channel remained the largest source of originations in the sector in the second quarter. (Includes two data charts.)