Inside Nonconforming Markets

Non-Agency MBS Issuance Declines in Second Quarter

azimmardi@imfpubs.com — Thu, 02 Jul 2026 11:44:22 -0400

Issuance of non-agency mortgage-backed securities declined during the second quarter of 2026. Non-agency issuance involving GSE-eligible mortgages, though, was up slightly. (Includes data tables.)

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.

Correspondents Up Share of Nonconforming Production

azimmardi@imfpubs.com — Thu, 18 Jun 2026 12:08:00 -0400

The correspondent channel accounted for 19.3% of nonconforming originations in the first quarter of 2026, up from 16.7% in the previous three-month period. (Includes two data tables.)

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.

Non-Agency Jumbo Lending Drops in First Quarter

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:08:00 -0400

Originations of non-agency jumbo mortgages declined by 18.2% on a quarterly basis in the first quarter of 2026. (Includes one data table.)

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.

Jumbo Servicing Volume Bumps Higher in 1Q

azimmardi@imfpubs.com — Fri, 05 Jun 2026 13:03:00 -0400

A group of 30 major servicers handled an estimated $1.44 trillion of jumbo mortgages at the end of March, a 1.0% increase on a quarterly basis. (Includes one data table.)

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.

Banks’ Mortgage Holdings Inch Down in First Quarter

azimmardi@imfpubs.com — Fri, 22 May 2026 13:18:44 -0400

Adjustable-rate mortgages accounted for 38.2% of first-lien holdings at banks and thrifts at the end of March, down from 42.6% at the end of December. (Includes data table.)

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.

Chase Lags on Non-Agency MBS Servicing

azimmardi@imfpubs.com — Fri, 22 May 2026 13:10:49 -0400

Among the top-five servicers handling non-agency mortgage-backed securities, JPMorgan Chase was the only servicer to see a drop in volume in the first quarter. (Includes data table.)

Higher-Priced Lending Declines in 2025

azimmardi@imfpubs.com — Fri, 22 May 2026 13:07:51 -0400

Non-agency originations of higher-priced mortgages declined to $32.29 billion in 2025. The loans accounted for just 1.7% of total originations last year. (Includes two data tables.)

Figure’s Ambitions Go Beyond HELOCs

azimmardi@imfpubs.com — Fri, 22 May 2026 13:06:55 -0400

Officials at Figure Technology Solutions see home equity lines of credit as a way to get into the residential mortgage market. They plan to expand into other offerings.