As recently as November, Impac Chairman and CEO George Mangiaracina said returns on loans eligible for sale to the government-sponsored enterprises were better than returns from non-QMs. However, this spring he indicated that market dynamics had changed.

The impairment rate on securitized non-QMs increased by 40 basis points on a monthly basis to 11.1% at the end of February.

Trends varied at the three big banks in the jumbo market. Wells Fargo, for instance, paused originations of the loans through correspondents in the second half of the year...

Sprout's Shea Pallante: “This is a big step forward for mortgage professionals...”

The slope also remained slippery for home-equity debt outstanding. The Federal Reserve reported $441.6 billion of home-equity loans outstanding at the end of 2020, an 11.9% drop from the previous year.

Refinances account for 83.1% of the collateral. The average interest rate is 3.00%, the average credit score 780...

Mark Szczepaniak: "The uptick in nonperforming loans hasn’t been that troubling to us because historically we have always made money on these nonperforming loans and we continued to do that straight through 2020."

Provident is stocking its MBS with conforming jumbos. Morgan is aggregating product through various lenders.

For the full year, expanded-credit lending was off 28.7% to an estimated $37.3 billion. The reason: Liquidity problems sparked by the pandemic.