Wells Fargo shot to the top of the list of originators of mortgages in prime non-agency MBS in the first quarter, demonstrating the power banks have to sway the market.
First Republic Bank and Flagstar Bank posted lower originations of jumbo mortgages in the first quarter on a sequential basis. However, lower interest rates are expected to boost production in the second quarter.
Impac Mortgage and Sprout Mortgage stand out among contributors to expanded-credit MBS. They’re the only two lenders among the top five that aren’t affiliates of firms that issue deals.
Efforts by the Trump administration and the FHFA to reform the government-sponsored enterprises will likely prompt more activity in the non-agency market. However, the devil is in the details.
360 mortgage plans to originate $1 billion of mortgages that don’t require verification of a borrower’s income or assets. The pilot program is limited to non-owner-occupied investment properties, which aren’t subject to ATR requirements.