Angel Oak Companies is grappling with weak demand for non-QMs. One of the firm’s lending units laid off about 20% of its staff last week and Angel Oak’s REIT unexpectedly replaced its CEO this week.
The mortgage exchange will now facilitate originations and sales of various types of non-QMs, with “some of the industry’s most generous guidelines” for the products.
After aggregating mortgages from some of the largest players in the non-agency market, Pacific Western Bank is looking to sell risk on the loans that have a total unpaid principal balance of $2.68 billion.
The regulator is seeking input on how to help borrowers benefit when interest rates decline. Options include revising documentation requirements for streamlined refis and policy changes to spur product innovation.
Rising interest rates and home price deceleration could limit fix-and-flip activity, though lenders active in the sector suggest that originations and profits remain strong.
Non-QM impairments decline after two-month increase; Balbec unit offers non-QM MBS with loans from Sprout; new CIO at Redwood; Velocity quickly packages business-purpose loans.
Spreads had steadily widened in the expanded-credit sector between February and July. But as spreads declined in August, demand for expanded-credit MBS appears to have improved.
MISMO is getting close to releasing revised standards for data collection in the non-agency MBS market. The effort could prompt efficiencies for lenders, due diligence firms and rating services.
A number of lenders have started offering conforming mortgages with balances as high as $715,000, even though the GSE loan limit is $647,200 through the end of this year. As with prior years, the lenders are anticipating higher loan limits for the GSEs next year.