Non-agency MBS issuance perked up in early January as investor demand improved. Redwood Trust offered a jumbo MBS after a year-long lull in issuance and expanded-credit MBS issuers priced deals at tightening spreads.

The impairment rate on securitized non-QMs posted its largest one-month jump in November since the early days of the pandemic. Hurricane Ian was a factor.

Going forward, the FHFA will seek public comments when the GSEs are looking to launch new activities or products. There are also some broad exceptions to the public notice standard.

In October, new standards for qualified mortgages took effect. It turns out that a provision in the final rule also applies to non-QMs, which could limit originations of loans where lenders look at only a small number of a borrower’s bank statements.

Efforts by the MBA and other industry participants to get the California Supreme Court to overturn a lower court’s ruling failed near the end of December. Servicers in the state are now limited on the amount default interest they can charge.

Redwood raises funds through sale of preferred stock; lender focusing on non-QMs has national aspirations; new DSCR tool for borrowers.

United Wholesale Mortgage is offering prime jumbo borrowers a 2-1 or 1-0 temporary rate buydown.  Meanwhile, A&D Mortgage announced temporary 3-2-1- and 2-1 rate buydowns.

Depositories grew their first-lien portfolios during the third quarter. JPMorgan was the only bank among the top 10 to report a sequential decline. (Includes data chart.)

Three of the four mortgage securitizations brought to the market this month include large proportions of investment-property loans.

A recent ruling by a California appeals court tied to default interest charges by lenders and servicers could have national implications, according to industry attorneys.