The non-QM share of Impac’s originations increased significantly in 2022. Still, its margins declined due to competition among lenders for non-QMs and weak demand for the loans in the secondary market.
Rising interest rates and fickle demand in the secondary market made it difficult to originate non-QMs in 2022. The hope among industry participants is that volatility will recede.
Non-QM lenders and MBS issuers are making adjustments amid a volatile secondary market. Issues include timing for MBS issuance and competition for new production.
At the end of 2022, Redwood had more capital dedicated to its business-purpose lending efforts than to aggregation of jumbo mortgages. Officials at the REIT expect the business-purpose segment to flourish even if there’s a recession.
Rising interest rates prompted a loss of $231.6 million at MFA Financial in 2022. The losses slowed in the fourth quarter, at “only” $6.7 million, helped by business-purpose lending operations.
The grid is used by third-party due diligence providers when assessing loans in non-agency MBS for compliance with the TILA-RESPA Integrated Disclosure rule.
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