The non-agency residential lending unit and business purpose lending arm are projected to earn returns greater than 20% this year. Still, Redwood took a large loss in 2020 due to volatility from the coronavirus.
Sterling Bank and Trust reached a settlement over faulty disclosures on the bank’s now shuttered non-QM program. The bank has upped reserves for further potential losses stemming from repurchases and loan sales.
Shellpoint processed more than 25% of the dollar volume of non-agency MBS issued in 2020. Servicers continue to grapple with elevated delinquencies, forbearance and concerns about disclosures. (Includes data chart.)
Non-agency forbearance declines; Pacific Western Bank acquires Civic Financial Services; Velocity inks new financing; Angel Oak Commercial Lending set for growth.
Profits in the fourth quarter weren’t enough to offset losses incurred earlier in the year by Annaly and Two Harbors. Meanwhile, a REIT with a non-agency focus turned a profit.
Goldman Sachs, JPMorgan Chase and Redwood Trust ramped up issuance of jumbo MBS in recent weeks, while other firms in the sector have still not fully recovered from COVID volatility.
PennyMac Mortgage Investment Trust took a $108.4 million loss in the fourth quarter on CRT transactions; Ellington Financial and an affiliate of Caliber Home Loans plan to bring non-QM MBS to the market.