After issuing $1.0 billion of expanded-credit MBS during the third quarter, Annaly is working to acquire more non-QMs. The REIT reported strong returns from the MBS.
MFA Financial took losses on non-QM sales earlier this year and obtained costly financing amid margin calls. Now the REIT is generating profits and paying off debt thanks to two MBS issuances in recent months.
Chimera is generating attractive returns by packaging jumbos, GSE-eligible investment-property mortgages and seasoned loans into non-agency MBS. The REIT continues to avoid non-QMs.
The volume of business the GSEs conduct in various noncore categories increased in 3Q but the noncore share of Fannie/Freddie business declined as lenders focused on refinances. (Includes data chart.)
The share of non-QMs that are delinquent or in a loan modification declined again in September. The impairment rate in the sector remains high, though loan holders are optimistic.
First Republic Bank increased its originations by 15.8% in the third quarter and Flagstar Bank posted a 33.3% increase in jumbo lending compared to 2Q20.
Is Onity Group eyeing a sale? Perhaps. And why not? Servicing values are approaching a 25-year high.
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