Production of higher-priced conventional mortgages increased in 2019, though the loans still have a relatively low market share. The top lender was a firm that focuses on loans for manufactured housing. (Includes two data charts.)

Non-agency forbearance numbers increase; Redwood CEO calls on Fed to include non-agency MBS in TALF; Fitch revises rating criteria; Citigroup’s jumbo aggregator assessed as “average” by Moody’s; Chase brings risk-sharing deal on seasoned loans; Ocwen turns slight profit in 2Q.

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.

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.

Under the proposal, some 147 smaller banks and credit unions won’t have to maintain an escrow account for higher-priced mortgage loans.

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 naysayers doubt nonbank originators and servicers have sufficient capital and liquidity to weather a storm.

Sales of non-QMs at distressed prices accounted for a large share of the nearly $65 million loss Impac took in the first quarter.