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.

It's likely Balbec paid well below par for the Sprout loans...

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 firm will support sales of various types of non-QMs, including bulk and flow options.

Wells Fargo boosted its conventional-conforming lending through correspondents by 2.7%...

In other company changes, the REIT promoted Fred Matera to chief investment officer.

F&F volume is down but "nothing terrible," said one investor...

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.)

Mortgage applications increased, affordability improved and defects are down; lenders expand outreach to Hispanic borrowers; Amrock offers cell phone e-close option; Rocket program temporarily reduces interest rates; study on flood risk disclosures; automated fraud detection.