Impac Mortgage Holdings (IMH)

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Some NonQM news....


Jumbo and Non-Agency Loan Changes

HELOCs are a big topic these days, despite the run up in the index rates. HELOCs even have their own home equity lending news: HEL.news. But jumbo, non-conforming, non-Agency, non-QM… although this general product is still the minority of production, loan originators need these products in order to help clients either refinance their existing homes, especially for self-employed borrowers, or purchase a new home.

The question occasionally comes up about why jumbo rates are less than conforming rates. The basic answer is that jumbo loans do not have a 52-basis point (about half a percent) guarantee/guarantor fee attached to each loan. The gfee is firmly in the domain of the FHFA’s Fannie Mae and Freddie Mac.

Life is not easy for non-QM lenders and investors. For example, this month Angel Oak Mortgage Inc., the publicly traded non-QM mortgage REIT, disclosed it had received a two-week extension on a financing facility it has with Barclays Bank. The new termination date is Oct. 14.

The facility was negotiated a few days ago through AOMI subsidiary Peachtree Mortgage. Angel Oak Mortgage parted ways with CEO and President Robert Williams, who helped take the company public in 2021.

Angel Oak Mortgage Solutions’ Non-QM products include delayed financing options. “It is a great way to pay to win a bid and then get the majority of it back within six months of purchase without waiting.”
https://www.mortgagenewsdaily.com/opinion/pipelinepress-10172022