In areas where the GSEs are seen as competing with the non-agency market, business was good for the GSEs in the first quarter of 2020. (Includes data chart.)
Neuberger Berman issued a non-QM MBS this week, ending a lull in issuance that started in late February due to volatility from the coronavirus. Other issuers also plan to return to the market.
Citadel Servicing Corp., another key player in the non-QM sector, remains quiet regarding its plans to reopen. Back in February, the lender/servicer was sold to HPS Investment Partners for an undisclosed sum.
Redwood took a $943 million loss in the first quarter amid volatility from the coronavirus. The REIT laid off about 35% of its employees in April, among other adjustments.
Profit at Velocity Financial declined in the first quarter and half the staff was temporarily furloughed. Still, the firm plans to issue an MBS in the coming weeks and get back on track.