The CEO detailed a variety of plans, from establishing asset management operations to venturing into home-equity products and expanding its footprint in business-purpose lending.

A big year for mortgage M&A? Sounds familiar...

The proprietary reverse mortgages in the MBS were originated by Reverse Mortgage Funding and Nationwide Equities.

Among a group of jumbo lenders that report originations by channel, the broker share increased to 7.0% in the second quarter from 1.6% in the first quarter. The increase in market share was largely tied to United Wholesale Mortgage.

Close to $15 billion of GSE-eligible mortgages have gone into non-agency MBS this year, including many loans for investment properties and second homes. That’s expected to slow due to a removal of restrictions on the GSEs.

Some non-agency lenders are using the newer QM standards, which allow more loans to receive QM status. Others are waiting to see if the CFPB will alter the provisions.

Redwood’s already generating record volume in its lending/aggregation business, with plans to increase activity and expand its footprint. The firm might also eventually drop its real estate investment trust status.

Sector-wide, bank and thrift holdings of first-lien mortgages declined by 1.4% during the second quarter. Among three big banks, trends varied.

Underwriting based on debt service coverage ratios is on the rise. The loans differ from GSE-eligible mortgages in that underwriting is based on income generated by the property rather than looking to the borrower’s DTI ratio.

Lenders can’t keep up with the demand for non-QMs from investors in the secondary market. Originations are expected to grow when the agency refi wave crashes.