In the first quarter of 2021, expanded-credit mortgages accounted for 0.7% of total first-lien production compared to 2.2% for all of 2019.

A&D's MBS is stocked with new production while PIMCO is tapping mortgages originated by Citadel Servicing Corp. nearly four years ago.

The switch to the new standards created some complications for single-closing construction-to-permanent loans and other products...

Most expanded-credit deals issued this year have been stocked with pre-pandemic loans...

While forbearance readings gradually head down, some 4.0% of mortgages outstanding are still in the loss mitigation status.

An estimated $8.60 billion of non-qualified mortgages and other expanded-credit products were originated in the first quarter. But the sector’s market share was still below 1.0%. (Includes data chart.)

Jumbo correspondent lending continued to make its comeback in the first quarter of 2021 after a sharp drop in volume tied to the coronavirus. Trends were mixed among lenders that focus on the retail channel. (Includes data chart.)

The non-agency market has emerged as an alternative, albeit at a higher cost, for lenders to deliver GSE-eligible mortgages backed by investment properties and second homes. However, some lenders are concerned about the adverse impact GSE restrictions could have.

Investors and borrowers alike are showing strong demand for fix-and-flip business purpose loans. Originators see volume rising and new players are entering the sector.

Chase issued its fifth large prime non-agency MBS of the year, along with a number of more traditionally sized deals. United Wholesale Mortgage is also set to issue its first deal.