Upwards of $1.0 billion of non-QMs are sitting on warehouse lines that would have typically been sold months ago, according to one estimate.

After nine months of declines, rate locks increased in January.

Issuance of Ginnie Mae MBS declined again in January, though at a slower pace than the drop-off seen in the final months of 2022. PennyMac was the top issuer during the month. (Includes two data charts.)

Issuance of prime non-agency MBS nearly ground to a halt during the fourth quarter. For the full year, activity was down almost 60%. (Includes three data charts.)

Angel Oak Mortgage is among the nonbanks trying to sell off somewhat seasoned non-QMs that have interest rates well below prevailing rates.

Redwood Trust scaled back its jumbo business in 2022 and doesn’t have plans for a significant expansion any time soon, even with Wells Fargo’s exit from the correspondent channel.

Shellpoint Mortgage Servicing handled servicing duties on close to 50% of the non-agency MBS issued in the fourth quarter. Select Portfolio Servicing reduced its activity during the quarter. (Includes data chart.)

Rising interest rates and financial volatility battered the non-QM market in 2022. This year almost has to be better by default, according to industry participants.

Redwood suggested Wells Fargo's exit from the correspondent channel won't boost the REIT's fortunes in the near term.

The DOJ continues to investigate issues involving a non-QM program Sterling Bank & Trust ended in 2019. Fallout from the program continues to cut into the bank’s profitability.