Banks and thrifts held $2.23 trillion of first liens at the end of the year, up 1.7% from the end of September. Trends varied considerably among the megabanks. (Includes data chart.)

The firm boosted its originations of non-QMs during the fourth quarter, though company officials suggested loan production in the first quarter could decline.

Six expanded-credit MBS hit the market in the past two weeks, including the largest deal since COVID upended the sector. Activity is much slower in the space for prime jumbos and GSE-eligible investment-property loans.

A look at the performance of investment-property loans reveals some differences between GSE-eligible loans and non-agency mortgages. Performance also differed from owner-occupied prime jumbos and non-QMs.

UWM offering bank statement mortgages; Spring EQ expands HEL guidelines; Toorak issues bridge loan securitization; non-QM impairments steady in January; new law to help with LIBOR-linked legacy deals.

Firms active in nonprime servicing increased their portfolios by 7.5% on an annual basis in 2021. Servicers also are turning to loan modifications as forbearance plans end. (Includes data chart.)

While delinquencies on non-QMs spiked in the early days of the pandemic, many of those borrowers returned to making payments or cured their debt without the loan holders suffering large losses.

Aggregation of non-agency mortgages isn’t generating the types of returns seen in 2021, but it’s still a good business, according to officials at MFA Financial.

AG Mortgage Investment Trust acquired $2.5 billion of non-agency loans last year, about half of them during the fourth quarter. The REIT is targeting returns of around 15% from non-agency MBS issuance.

Western Asset Mortgage Capital took a third consecutive loss during the October-December period as it works to shift its investment focus to non-QMs and other non-agency products.