Looking ahead for the non-QM market?

In recent weeks, a number of lenders and software providers have launched new products to serve the mortgage lending segments outside of the conforming market, which are expecting a strong year, even if it’s not quite as stellar as 2021.

BofA Securities predicted $190 billion of gross residential mortgage-backed securities issuance this year, “mostly unchanged” from 2021’s $202 billion in a January report. That total includes securitized government-sponsored enterprise credit risk transfers, private mortgage insurer CRTs, non-QM, single-family rental, jumbos and business purpose loans like fix-and-flip.

In January, a pricing hiccup slowed the functioning of the PLS market, said Pete Pannes, the chief business officer for Clayton and its parent company Covius. But this followed a strong end to 2021, which in turn followed a year in which that portion of the secondary market unraveled in the early days of the coronavirus shutdown.