Happy with its returns from non-QM lending and MBS issuance from its investment in LendSure, Ellington Financial may invest in other originators.

Servicing balance for jumbo mortgages fell in 2Q20 among a group of 30 servicers tracked by this newsletter, including the top three in the industry. (Includes data chart.)

Lenders want the CFPB to provide a six-month overlap between new QM standards coming into effect and the expiration of the “patch.”

The ARM and IO share of loans in expanded-credit MBS increased in the second quarter. The volume of loans produced through the correspondent channel and for investor properties declined. (Includes three data charts.)

Only two non-agency MBS hit the market in the past two weeks: a non-QM deal from PIMCO and a deal from Starwood Property.

Velocity, which focuses on loans for investment properties, is working on obtaining warehouse financing without mark-to-market provisions.

Non-agency forbearance increases; prices for luxury homes fluctuate; PCMA sees strong interest in new non-QMs; Angel Oak and Citadel offer loans underwritten with 12 months of bank statements; former Redwood Trust president moves on to rent-to-own provider.

In the PIMCO deal, the loans have seasoned for an average of 14 months and 21.7% of borrowers are on forbearance/deferral plans.

The Federal Reserve’s lending program is credited with helping the MBS and ABS sector even though investor demand is falling short of expectations.

The rating service its stepping away from rating new commercial MBS backed by single-borrower hotel loans due to uncertainty prompted by the coronavirus. Only one such deal has been issued since April.