There werent burners, and considering we never had images or the know-how to even press PS1 discs properly, I doubt UMD mastering hardware is out there.
As far as UMDs are concerened, according to some of the dev documents the "PSP has internal UMD emulator in firmware". I don't know at what level specifically it is emulated but I would imagine there is some interesting stuff in there.
Indeed, I believe what they're referring to is the NP9660 driver in the firmware, the NP-equivalent of the UMD9660 driver.