Delinquencies and loan modifications on non-agency mortgages increased in May, but at a slower rate than the sharp increase in April. Delinquencies are much higher on non-QMs than jumbos.
Lenders in the non-QM sector are working to get back to the way things were before the coronavirus. Sprout has resumed correspondent lending while a number of lenders have loosened underwriting standards.
Wells Fargo is maintaining its steady issuance of prime non-agency MBS while a pending deal from Neuberger Berman is much larger than the expanded-credit MBS the firm issued in May.
United Wholesale Mortgage reached the top spot by more than doubling its sales of jumbo mortgages during 2019. Banks purchased nearly 60% of jumbos sold during the year. (Includes data chart.)
California, already the largest state in terms of jumbo originations, increased volume by 50% in 2019. Overall, jumbo originations increased by 37% last year. (Includes data chart.)
The CFPB is hoping that by removing a firm debt-to-income ratio metric from QM qualification standards, lenders will come up with new techniques to qualify borrowers.
Regulators delay review of risk-retention requirements for securitized mortgages; Wells Fargo updates underwriting standards for jumbo mortgages originated through the retail channel.
The proposal could eliminate GSE eligibility as a standard for a loan to be deemed a qualified mortgage. The regulator aims to level the playing field between the non-agency market and Fannie/Freddie.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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