Despite the achievement of the ranking, UWM’s contribution to jumbo MBS actually declined by 4.4% on an annual basis last year while overall non-agency jumbo securitization increased...
United Wholesale Mortgage was the top contributor to jumbo securitizations in 2020. The average credit score, debt-to-income ratio and combined loan-to-value ratio on loans in jumbo MBS somewhat tightened in 2020. (Includes two data charts.)
The non-QM market is poised for a comeback, helped by strong demand from investors in the secondary market. However, production is lagging as lenders continue to focus on agency refis.
First Republic Bank reported increased production in the fourth quarter and for full year. Volume was down on an annual basis at Flagstar Bank and Redwood Trust.
It’s taking longer to originate non-qualified mortgages and offload the product due to capacity constraints at due diligence providers and other third-party vendors.
A significant portion of non-QMs could meet new standards for qualified mortgages, according to Kroll Bond Rating Agency. It’s also possible that the CFPB will alter the standards before they take effect.
Chase is set to issue a $1.03 billion MBS backed by newly originated jumbos. Meanwhile, Credit Suisse and MFA have deals with slightly seasoned non-QMs and investment-property loans.