Non-QM lenders are bullish about the sector’s potential despite headwinds in the housing market.

Banks reduced their non-agency jumbo lending in the early months of 2024, with nonbanks picking up some of the slack. Deliveries of high-balance mortgages into agency MBS also declined in the first quarter. (Includes three data tables.)

The private market is providing adequate liquidity for closed-end second liens, according to the American Bankers Association. The trade group also questioned Freddie Mac’s motivations for a proposal to acquire seconds.

The investor share of home purchases hit an all-time high in December.

Waiting for the Federal Reserve to cut interest rates is a bit like waiting for Godot. It seems as though a cut in rates may never come. Still, there is some improvement in volumes and margins in the non-QM sector.

As many as 88,000 individual tax identification number mortgages could be originated in a year if certain market barriers were removed, according to Urban Institute researchers.

A judge determined that Change Lending will be able to provide loans as a certified CDFI until at least December.

A record number of homeowners are turning to HELOCs to perform renovations on their properties or paydown credit card debt.

For years, banks have been dominant players in the non-agency jumbo space. One strategy: Originate a loan, place it in portfolio and earn a spread. But thanks to rising rates and increased regulatory scrutiny, the economics aren’t as attractive.

Amid a housing supply crunch, investors are finding it more profitable to focus on rental properties instead of fix-and-flip homes.