Inside Nonconforming Markets

Expanded-Credit MBS Issuance Declines in 2Q

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:10:43 -0400

Issuance of expanded-credit mortgages declined by 4.8% on a quarterly basis in the second quarter, with purchase-mortgage volume down. (Includes three data charts.)

Lack of Uniformity Among BPLs an Issue for Servicers

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:08:44 -0400

Servicers of business purpose loans noted challenges handling the asset class due to the customizable structure of the loans.

Home Equity Lender Button Finance Expands Into Non-QMs

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:07:45 -0400

Founded in 2019, New York-based Button Finance originally planned to focus on home equity lending, but is now branching out into non-qualified mortgages.

HEI Legislation Under Consideration in Congress

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:06:46 -0400

If passed, the Home Equity Lending Integrity Act would regulate home equity investment products, including subjecting HEIs to requirements under the Truth in Lending Act.

Non-QM Performance Continues to Drag

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:04:48 -0400

Impairments on non-qualified mortgages rose on a monthly basis in May, driven by higher new impairments and weaker cure and made payment rates, according to dv01.

RTL Lending Rebounds, Strong Volume in June

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:03:53 -0400

June’s growth follows a period of stagnation as bridge lending volume flattened out at the end of 2025 and into early 2026.

Growing Share of Luxury Buyers Less Reliant on Mortgages

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:02:54 -0400

More than 70% of buyers of luxury-priced homes pay in cash, while 6.5% of luxury buyers use traditional financing, according to a recent report from Coldwell Banker Global Luxury.

News Briefs

azimmardi@imfpubs.com — Fri, 17 Jul 2026 11:01:55 -0400

JPMorgan Chase offers unique non-agency MBS; book value declines at Redwood Trust; Silver Hill Capital launches medical professional loan program.

DSCR Sector Challenged by Short-Term Delinquencies

jdohnert@imfpubs.com — Thu, 02 Jul 2026 11:43:24 -0400

Some debt service coverage ratio loan borrowers are deliberately going delinquent while they renovate a property to improve its long-term rental performance.

Credit Quality, Insurance Dragging Down BPL Market

jdohnert@imfpubs.com — Thu, 02 Jul 2026 11:42:25 -0400

A massive influx of investor demand for business-purpose loans has prompted lenders to loosen underwriting standards for the asset class.

UWM Offering Mortgages for Medical Professionals

azimmardi@imfpubs.com — Thu, 02 Jul 2026 11:41:26 -0400

United Wholesale Mortgage joins a growing list of lenders offering a specialized mortgage product to medical professionals.

Redwood Makes First eNote Trade

azimmardi@imfpubs.com — Thu, 02 Jul 2026 11:40:34 -0400

The real estate investment trust said the biggest hurdle in its eNote foray was the lack of adoption among its whole-loan partners.

Lenders Launch Digital HELOCs to Tap Equity

azimmardi@imfpubs.com — Thu, 02 Jul 2026 11:39:36 -0400

Truss Financial and Deephaven Mortgage launched digital home equity line of credit products.

Hometap Offering HEI Program in More States

azimmardi@imfpubs.com — Thu, 02 Jul 2026 11:38:38 -0400

The fintech said the demand for shared-appreciation mortgages is a sign that traditional products have fallen short.

News Briefs

azimmardi@imfpubs.com — Thu, 02 Jul 2026 11:28:39 -0400

Santander Bank began marketing a $375.0 million non-QM securitization; CrossCountry Mortgage is marketing a $585.8 million non-QM securitization.

Figure, Sixth Street Acquire RTL, DSCR Lender Kiavi

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:07:00 -0400

Figure expects to benefit from acquiring technology as well as business-purpose loan production.

Short-Term Loan Production Continues to Grow in 2025

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:06:00 -0400

Although the growth curve flattened a bit in 2025, production of loans with terms of two years or less increased by 15% last year. (Includes one data table.)

Loan Investors Scrutinizing Non-QM Appraisal Values

jdohnert@imfpubs.com — Thu, 18 Jun 2026 12:05:00 -0400

Poor quality appraisals and weak due diligence controls are leading to growing concern about appraisal values for non-QMs.

Adjustable-Rate Lending Drops in First Quarter

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:04:00 -0400

Production of adjustable-rate mortgages in the first quarter of 2026 totaled $79.00 billion, down 16.0% from the fourth quarter of 2025. (Includes one data table.)

Government Actions May Complicate ITIN Lending

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:03:00 -0400

President Trump’s recent executive order targeting lending to immigrants could change lenders’ practices when lending to borrowers using individual taxpayer identification numbers.

Fitch Conservative About DSCR, Crypto Innovations

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:02:00 -0400

Fitch Ratings has concerns about new products in the debt service coverage ratio and cryptocurrency spaces.

News Briefs

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:01:00 -0400

Button Finance makes three hires; Logan Finance appoints Western managing director of sales; AD Mortgage launches non-QM offerings for prime borrowers; Insula Capital Group introduces portfolio-level debt service coverage ratio financing; Land Gorilla launches AI-powered due diligence solution; Hometap offering two-tier pricing structure for home equity investments.

Expanded-Credit MBS Continue to Get Bigger

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:07:00 -0400

Two of the largest expanded-credit MBS seen thus far in 2026 hit the market recently, with investor demand remaining strong.

Increased Liquidity Boosts Non-Agency Opportunities

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:06:00 -0400

With more demand than supply, interest rates on DSCR mortgages are converging with agency rates.

Denial Rates on Jumbos Drop Again in 2025

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:05:00 -0400

The denial rate on jumbo mortgages fell to 12.1% in 2025, down from 13.0% in 2024. (Includes one data table.)

NAIC Eases Restrictions on Mortgage Investments

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:04:00 -0400

The National Association of Insurance Commissioners voted to reduce restrictions on mortgage investments by insurance companies, providing more incentives for the firms to buy non-agency assets.

Lenders Consider Expanding Credit Box for RTLs

jdohnert@imfpubs.com — Fri, 05 Jun 2026 13:02:00 -0400

More extensive rehab projects and growing investor demand have pushed some lenders to consider getting more lenient with some standards for residential transition loans.

News Briefs

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:01:00 -0400

Luxury home sale price growth outpaces non-luxury prices; Newfi Lending integrates income analysis tool with Prudent AI; Velocity Financial appoints new chief technology officer.

Non-QM Lenders Look to Maintain Momentum

azimmardi@imfpubs.com — Fri, 22 May 2026 13:14:46 -0400

At the MBA’s secondary market conference this week, non-agency industry participants discussed how to keep non-QM originations flowing through market volatility.

Explosion of Insurance Capital Helping DSCR Lending

azimmardi@imfpubs.com — Fri, 22 May 2026 13:12:47 -0400

Demand from insurance companies is helping fuel originations of mortgages underwritten with debt service coverage ratios.