Although it booked a loss in the fourth-quarter, MFA believes a variety of management changes at its business-purpose affiliate lender will boost originations in 2025.

The firm has been restructuring its portfolio since 2022 with the goal of producing “durable” earnings.

A small group of lenders accounted for the majority of prime non-agency MBS issued in 2024. JPMorgan Chase was the leader in the market as both an issuer and lender. (Includes three data tables.)

Updated guidance has exempted the GSEs from state mortgage licensing requirements but non-agency market participants still need to comply with the rule by April.

It was largely business as usual for Fannie Mae and Freddie Mac in the fourth quarter. But going forward, the Trump administration could make moves to reduce the two GSEs’ activity. (Includes data table.)

Bank exits and interest rate uncertainty could create new opportunities for nonbanks to acquire loans from depository balance sheets.

ECM and agency-eligible loans helped pick up the slack for non-agency MBS issuance in the fourth quarter as prime volume slowed.

Redwood said it will now aggregate bank statement loans, CPA-prepared profit-and-loss statements and debt service coverage ratio loans through its Aspire correspondent platform.

MBS investors remain protected despite rising delinquencies on non-qualified mortgages.

RTL lender Groundfloor believes strong investor demand and a lack of available housing should help boost the market this year.