Originations of higher-priced non-government mortgages increased by 11% in 2018. The loans can’t receive safe harbor QM status and many higher-priced mortgages are required to include escrow accounts. (Includes two data charts.)

Issuance of non-agency MBS slowed near the end of the third quarter but presale reports for a number of deals have been published this month and more securities are on the way.

Originations of reverse mortgages are dominated by FHA loans. However, there’s a loan limit on FHA loans, allowing Reverse Mortgage Funding and other lenders to develop a market for proprietary products.

The CFPB is considering whether to provide QM status to mortgages that didn’t miss payments in the early years after origination. The proposal has support from some lenders.

In an effort to receive favorable capital treatment for credit-risk transfer on non-agency mortgages, JPMorgan Chase is preparing a unique deal.

Non-agency MBS issuers are focusing on deals backed by a single product, because they are a better gauge of prepayment speeds.

Underwriting standards vary sharply for investment-property loans delivered to the GSEs and those sold into non-agency MBS.

 Fitch said the referenced mortgages will remain on balance sheet as unencumbered assets of JPMorgan Chase.