Retail remained the predominant source of jumbo originations in 2022. Changes in the makeup of the market are expected as Wells Fargo recently exited the correspondent channel. (Includes data chart.)

An effort by big banks to prop up First Republic Bank triggered downgrades by rating services and only temporarily paused the decline in the bank’s share price. The bank is considering various strategic options.

Lenders originating ARMs weren’t able to buck the broader trend of declining originations in the fourth quarter of 2022. Still, on an annual basis, the ARM share nearly doubled in 2022 thanks to rising interest rates. (Includes data chart.)

The bank has been addressing fraud in its non-QM program since late 2019. The cleanup has involved fines, settlements, buybacks and the departure of more than 100 officers and employees.

Holdings of first-lien mortgages at banks and thrifts increased by nearly 10% in 2022. First Republic Bank stood out with a nearly 30% increase. (Includes data chart.)

Velocity Financial’s focus on non-agency business-purpose loans paid off in 2022. The lender’s income increased even as originations declined.

Altisource Asset Management is now originating bridge loans and non-agency mortgages for investment properties. The firm has agreements to sell whole loans to insurance companies and asset managers.

The non-QM share of Impac’s originations increased significantly in 2022. Still, its margins declined due to competition among lenders for non-QMs and weak demand for the loans in the secondary market.

Non-agency MBS issuance slows; Fund That Flip forms REIT for bridge loans; Arc Home hires Sprout’s former chief production officer.

On a more positive note, Guaranteed Rate announced a handful of new hires this week...