After a pause for about four months, Citadel Servicing and Verus Mortgage Capital have re-entered the non-qualified mortgage market. But Citadel is no longer offering non-QMs based on one-month bank statements.

GSE business in various noncore categories increased during the second quarter as lenders turned their focus to agency business. (Includes data chart.)

The REIT’s aggregation of non-agency mortgages typically dwarfs its business-purpose lending activity, but that wasn’t the case in the second quarter of 2020.

A lack of standardized reporting is causing problems for non-agency MBS investors. In one non-QM MBS, research firm dv01 found 233 loans that had been modified while the trustee reported only 41 mods.

After increasing in March, April and May, the delinquency rate on securitized non-QMs declined in June. Now servicers are grappling with forbearance plans that are expiring.

Overall, 14.6% of applications for jumbo mortgages were denied in 2019. Among the top 10 lenders, denial rates ranged from 1.1% to 41.5%. (Includes data chart.)

MFA and Western Asset Management took losses on non-QMs in 2Q. Anworth is in a holding pattern and Starwood is buying non-QMs at a discount.

Share of non-agency mortgages in forbearance down slightly; Impac takes a loss in 2Q.

PennyMac posted a record profit in the second quarter and went on a hiring spree to support its origination and servicing activities.

The real estate investment trust is ready to take non-agency loan aggregation to pre-crisis levels, and believes investors are seeking the types of assets the company offers.