Today's LendingLife is coming to you from MBA's Secondary & Capital Markets Conference in NYC.
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LendingLife Community,
Today's LendingLife is coming to you from MBA's Secondary & Capital Markets Conference in NYC. This is a timely event, as lending execs work to determine which way the economic winds are blowing – and exactly how this inventory-constrained environment will impact lending operations and financial performance.
One trend is clear — lenders, originators and real estate agents are working harder than ever to keep pace on volume. Speaking with attendees at HousingWire's "Cocktails with Logan" event last night, we heard anecdotes of how much harder originators are working to get borrowers qualified and then having to reaffirm to real estate agents that their buyers are still qualified as rates rise. Some LOs are even sending video updates to their most active agent partners to provide confidence in their borrowers' ability to close.
Halfway through the second quarter… overall market conditions are challenging. The latest MBA forecast which was released on Monday shows an updated projection of 4,479,000 purchase loans in 2022, an 8.1% decline from 2021. Refi is projected to be 2,266,000 units — a 64.6% decline from the prior year. But that's old news at this point in the game.
When analyzing purchase market trends, a few bright spots are revealed. This year's non-QM volume numbers are impressive, up nearly threefold over the first three months of this year, compared with 2021. In Q1 of 2022, a total of 37 non-QM securitizations were completed or underway valued at $15.2 billion, compared to 17 deals valued at $4.8 billion over the first full three months of 2021. Mortgage bankers are on the hunt for opportunities in this inventory-starved purchase market, and non-QM lending is expected to continue its momentum as a sweet spot in the mortgage market.
Stay tuned for more coverage from MBA Secondary. This afternoon Senior Reporter Bill Conroy and I will be attending a session about 'What's New in Non-Agency' which will certainly be a revealing looking at this wave of non-QM momentum.
Let Angel Oak help you capitalize on the largest growing sector in the mortgage industry – non-QM. Refinance volume is lower, and the market remains competitive. The leader in non-QM has products and resources to help move the needle.
In 2022's changing market, non-QM has been a hot topic for many. HousingWire recently caught up with Steven Schwalb, managing partner of Angel Oak Lending, about the changes investor appetite has gone though for non-QM.
Homepoint says many potential borrowers are underserved by the prime jumbo and the agency market. The wholesale lender plans to launch two non-QM products this year.
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