Underwriting standards on jumbo mortgages tightened in March and April amid volatility from the coronavirus. The spread on interest rates for jumbo mortgages is also wider than it was before March.
Delinquencies and loan modifications on non-agency mortgages increased in May, but at a slower rate than the sharp increase in April. Delinquencies are much higher on non-QMs than jumbos.
Lenders in the non-QM sector are working to get back to the way things were before the coronavirus. Sprout has resumed correspondent lending while a number of lenders have loosened underwriting standards.