Nearly $4.0 billion of non-agency MBS with mortgages for investment properties was on offer in the past two weeks. Many of the deals are backed by GSE-eligible mortgages.

Ocwen, which had plans to ramp up its clean-up calls of non-agency MBS, put the activity on hold following a pricing issue with Deutsche Bank, a trustee for the MBS.

S&P recently downgraded its view of home prices at the national level to overvalued from undervalued. How rating services view home prices plays a role in credit enhancement levels for non-agency MBS.

After years of contributing loans to expanded-credit MBS issued by others, AmWest came to market with its own deal in September. Angel Oak ranked second among contributors to EC MBS issued in the third quarter. (Includes three data charts.)

Non-agency MBS can generate returns in the mid-teens, according to some issuers. Also, a reduction of limitations placed on the GSEs isn’t expected to slow non-agency MBS issuance of GSE-eligible loans.

Shellpoint was named as servicer on $7.31 billion of non-agency MBS issued during the third quarter. Cenlar, a major subservicer in the sector, is under a consent order with the OCC. (Includes data chart.)

Chase and Rocket are offering separate non-agency MBS sized at more than $1.0 billion each and stocked with jumbo mortgages. There’s also plenty of GSE-eligible loans for investment properties in the market.

Even with the clarification, some suggest VA lenders need more details to understand when they may refinance a loan included in a Ginnie-guaranteed MBS pool.

Congress is getting closer to passing legislation that would help legacy MBS and ABS transition away from LIBOR; there’s a securitization angle in Zillow’s move to discontinue its fix-and-flip business.

Moody’s is considering increasing credit enhancement requirements and capping ratings for mortgage warehouse lending securitizations that allow for “wet” loans.