The expanded-credit sector lost market share in 2019 as lower interest rates helped propel refinances of conforming mortgages. Citi was the top lender in the space. (Includes data chart.)

Presale reports for three deals backed by new originations were published this week. However, there’s uncertainty about how they will be received by investors due to market volatility related to the coronavirus.

The retail channel, which is the predominant source of jumbo originations, gained market share from the correspondent channel last year. (Includes data chart.)

Investors that are active in the market for non-QMs can’t seem to get enough of the loans or MBS. Meanwhile, large firms continue to avoid the sector due to concerns about liabilities and the lack of uniformity.

Redwood’s mortgage aggregation activity is increasing as banks apparently can’t handle all of the new volume tied to a decline in interest rates.

Despite regulatory talk about increasing efforts to help the non-agency market compete with the GSEs, the volume of noncore loans sold to Fannie and Freddie increased in 2019, led by mortgages with DTIs greater than 43%. (Includes data chart.)

MFA Financial sharply boosted its acquisitions of non-QMs in the fourth quarter. It has investments in five lenders and plans to issue MBS.

OptionWide is a relatively new non-QM lender while DoubleLine has close to $150 billion in assets under management.