While most non-agency MBS servicers specialize in handling either prime mortgages or expanded-credit loans, Shellpoint services large volumes of both loan types.
JPMorgan Chase aggregated loans from various lenders while American Mortgage Investment Partners Management has a deal backed by mortgages originated by Visio Financial Services.
Shellpoint Mortgage Servicing is the top servicer, by far, of non-agency MBS issued since the beginning of 2019. The firm handles both prime loans and expanded-credit mortgages. (Includes data chart.)
The lack of standardization in the non-agency MBS market has raised concerns about how servicers are handling loans in forbearance. Critical details regarding loan performance are missing, according to investors.
Demand for non-QMs in the secondary market is helping lenders loosen underwriting standards and drive down interest rates for new production. Five non-QM MBS hit the market in the past two weeks.
Production of higher-priced conventional mortgages increased in 2019, though the loans still have a relatively low market share. The top lender was a firm that focuses on loans for manufactured housing. (Includes two data charts.)