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Inside Nonconforming Markets

December 11, 2020

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CFPB Sets QM Standards, Eliminates GSE ‘Patch’

The Consumer Financial Protection Bureau late this week issued two final rules for qualified mortgages: One replaces the 43% debt-to-income ratio with a pricing threshold and the other creates a seasoned QM category. Read More

Jumbo Lending Through Correspondents Down Sharply in 3Q

The correspondent channel accounted for 5.7% of jumbo originations among a group of major lenders tracked by this newsletter, down from 10.5% in 2Q20. The retail channel gained all of that market share. (Includes data chart.) Read More

Non-Agency Lending to Grow When Agency Refi Slows

Lenders tightened underwriting standards on non-agency mortgages in March and April, opting to focus on agency refis. But when that business declines, non-agency lending could rebound. Read More

New Prospects for Jumbo Lenders as GSE CLLs Rise

With GSE conforming loan limits increasing by 7.4% in 2021, jumbo lenders could miss out on billions of dollars in originations. But there are some opportunities in areas where home prices are rising quickly. Read More

IO Lending a Bright Spot for Non-Agency Market in Third Quarter

Among a group of 15 lenders, IO production increased by 22% in the third quarter and by 60% at the nine-month mark. (Includes data chart.) Read More

Non-Agency Loan-Mod Practices Vary Widely

Forbearance offers depend on what’s allowed by non-agency MBS contracts, but some deals don’t address the issue at all. Read More

Bank Holdings of First Liens Increase in Third Quarter

Holdings increased by 1.2% in the third quarter. Wells’ boosted its portfolio while BofA reduced its holdings. (Includes data chart.) Read More

Jumbo MBS with Newer Loans Hit the Market

Three issuers of jumbo MBS offered deals in the past two weeks, including the first post-2010 issuance from Morgan Stanley. Read More

News Briefs

Loans in forbearance decline; non-QM impairment rate falls; non-agency trading booming at Maxex; fix-and-flip lender on track for $1 billion in production; former Ocwen CFO now leading LendingHome. Read More

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As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

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