Some non-agency lenders are widening the credit box to uncomfortable levels, prompting discussion at the ABS East conference this week.

Wells Fargo was the only bank among the top 10 holders of first liens to reduce its portfolio during the third quarter. The bank’s holdings are also down sharply on an annual basis. (Includes data chart.)

Issuers of prime non-agency MBS are increasingly removing loans subject to third-party due diligence reviews from the final MBS pools. Kroll Bond Rating Agency said the practice is a slippery slope.

Certain credit unions will finally be allowed to acquire mortgage servicing rights starting in April.

ARM lending ticked up during the third quarter though the ARM share of total originations remains well below the level seen in 2019. (Includes data chart.)

With GSE loan limits in high-cost areas nearing $1 million in 2022, Redwood Trust called on the FHFA to use its powers to place limits on the GSEs’ acquisitions of high-balance mortgages.

QM revisions not on CFPB’s agenda; regulators leave risk-retention standards as is; forbearance on non-agency loans increase; non-agency MBS issuance update; Deephaven allowing remote appraisals for non-QMs.

Six federal regulators tasked with overseeing risk-retention requirements for residential MBS decided to leave the standards unchanged after a two-year-long review.

Some investors in MBS and ABS are ready to discard data collected in the past two years due to distortions from actions by the federal government. One problem: projecting asset performance moving forward.