Issuance of prime non-agency MBS nearly ground to a halt during the fourth quarter. For the full year, activity was down almost 60%. (Includes three data charts.)

Angel Oak Mortgage is among the nonbanks trying to sell off somewhat seasoned non-QMs that have interest rates well below prevailing rates.

Shellpoint Mortgage Servicing handled servicing duties on close to 50% of the non-agency MBS issued in the fourth quarter. Select Portfolio Servicing reduced its activity during the quarter. (Includes data chart.)

Rising interest rates and financial volatility battered the non-QM market in 2022. This year almost has to be better by default, according to industry participants.

Most of the non-agency MBS on offer within the past two weeks was stocked with mortgages for investment properties.

Ginnie, by the way, ranked as the top agency MBS issuer for the fifth straight month.

Can nonbanks become significant players in the HELOC market and ride MBS execution to a new wave of dominance? Due diligence firms that facilitate such transactions hope so.

The loans backing the deal have average seasoning of 12 months.

Bottom line: Investment-property loans were a bright spot, accounting for nearly 60% of expanded-credit MBS...

Aided by cheap money and ultra-low mortgage rates, Ginnie EBOs could pad quarterly earnings...