Non-QM Challenges Persist Amid Rising Impairments

Quick Insights

• Overview: The sector experienced another month of underperformance, with Total Impairments rising 33 bps and Total New Impairments rising 18 bps MoM.

• Regional Prepayments: The West (excluding California) recorded the largest prepayment rate increase, moving from the second slowest prepaying region three months ago to a tie for the fastest today.

• Deal Age: The 2023 vintages continue to lag behind prior years, with 60+ day DQs rising at a faster pace in recent months, indicating an uptick in serious delinquencies among borrowers.