The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

Tracey Velt breaks down the latest RealTrends 500 rankings

During the episode, Velt highlights which brokerages achieved top rankings in both categories for 2020, and shares what stood out to her the most about the rankings.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

About 7M refi candidates missed the “forever rate” boat

Rates jumped to 3.17% last week and Black Knight reported that there are now just 11.1 million “high quality” refi candidates. The smallest number of potential refi candidates in a year.


Non-QM lending is making a comeback

Impairments reach pre-pandemic levels in credit risk transfers

Even with total credit risk transfers (CRT) and non-QM lending trending down due to seasonality, some observers are predicting a strong beginning to 2021.

Officials with dv01, a lending markets analytics company, remain encouraged by low levels of new impairments, which reached pre-pandemic levels in both CRT and non-QM.

Vadim Verkhoglyad, dv01 vice president and co-head of research and publication, said modifications should conclude in the upcoming months and the industry shouldn’t expect any surprises.

“All of these factors further the broad theme we have echoed across our reports, which is consumers and homeowners entered COVID-19 in robust financial health and have continued to perform as such – even through quarantines, massive unemployment, and decreased stimulus benefits,” Verkhoglyad said.

A recent dv01 report showed that, among data collected at the end of November, the change in non-QM impairments from last February is still substantially higher than the change in U-6 unemployment. That’s significant, since November non-QM impairments declined by 20 basis points month-over-month to 11.3%, per the report.

Mike Fierman, managing partner and co-CEO of Angel Oak, recently told HousingWire he expects the non-QM market in 2021 to grow quickly as the economy recovers from the pandemic.

He noted that, in a normal year, a healthy non-QM market should report approximately $300 billion in originations per annum. In 2020, Fierman said, non-QM origination totaled around $18 billion, so there is plenty of room for growth.

“Another current market dynamic affecting non-QM volume is historically low interest rates,” he said. “Many originators are focusing on agency refinances as rates remain very low. The low-rate cycle will eventually change and originators will need to add new mortgage programs to their offerings to remain relevant to their client base.”

Other key stats from dv01’s recent report:

  • New impairments in CRT loans were 0.57% and are back to pre-pandemic averages
  • New impairments dropped 91% from their April peaks
  • Prepayments in CRT fell to 44.6%, largely due to seasonality
  • Performance among bank statement loans worsened in November, while other types continued to improve

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