If you’re opening a new mortgage company it stands to reason that the two least likely places you’d pick for your headquarters are New York City and San Francisco.

Issuance of nonprime mortgage-backed securities skyrocketed in the second quarter, and analysts anticipate that the market is set for more growth. A total of $1.08 billion of MBS backed by newly originated nonprime mortgages was issued in the second quarter of 2017, according to Inside Nonconforming Markets. It was the strongest post-crisis quarter for the sector, which has been percolating since the second half of 2015. Issuance in the April-June cycle ... [Includes one data chart]

Issuance of prime non-agency mortgage-backed securities cooled off somewhat in the second quarter of 2017 after a relatively strong showing in the previous period. Three deals totaling $1.88 billion were issued in the second quarter, a 27.6 percent drop from the first three months of the year, according to Inside Nonconforming Markets. However, activity in the first half of this year outpaced the first half of 2016, as the dollar volume of issuance was ... [Includes one data chart]

A unit of Angel Oak Companies issued its largest nonprime mortgage-backed security this week. The deal comes shortly after a significant amount of mortgages from Angel Oak were included in a separate nonprime MBS from Deephaven Mortgage. The $210.45 million Angel Oak Mortgage Trust I LLC 2017-2 received AAA ratings from DBRS and S&P Global Ratings. Angel Oak has issued three other nonprime MBS, the largest of which was a $150.35 million transaction in 2015 ...

Flagstar Bank recently received assessments by Fitch Ratings of the bank’s origination platform and servicing operations. The ratings could signal increased involvement in the jumbo mortgage-backed security market by Flagstar. Fitch assigned an “average” rating to Flagstar’s origination platform. “Notable strengths of Flagstar’s origination platform include its experienced senior management team and staff, robust loan sourcing strategy, and comprehensive underwriting ...

According to Morningstar Credit Ratings, the weighted-average loan-to-value ratio for securitized non-QMs is 75.2 percent and the average debt-to-income ratio is 36.6 percent

The GSEs securitized $111.31 billion of purchase loans in the second quarter, a 21.5 percent jump from the first quarter.

Meanwhile, Redwood is working toward issuing a jumbo MBS from its “expanded prime” program…

This spring, Fannie provided Invitation Homes with a $1 billion financing vehicle, which gave the real estate investment trust a cheaper cost of funds than tapping the MBS market.

The Fed governor noted: “The risk that we’ll settle into this current situation for the long run is very great.”