JPMorgan Chase is rolling out its first non-prime mortgage-backed security stocked solely with investment-property loans underwritten using debt service coverage ratios. Chase so far has focused on prime borrowers.

The latest expanded-credit MBS from the Hollywood, FL-based lender is smaller than previous transactions from the firm.

Facing continuous losses, Altisource Asset Management has tightened its underwriting standards. Meanwhile, management at AG Mortgage Investment Trust believes there will be opportunities at both the origination and aggregation level in the non-agency market.

JMP Securities initiates coverage of fix-and-flip lender Sachem Capital; S&P Global Ratings agrees to pay a $2.5 million penalty to the SEC; NYSE approves Impac’s compliance plan.

Earlier this year, banks saw an advantage in purchasing jumbo mortgages for their portfolios, but of late it seems as though the edge is beginning to erode. 

The new accounting standard, which went into effect just before the pandemic, requires the GSEs to anticipate losses over the life of the loan. 

KBRA said that third-quarter MBS issuance volume didn’t meet its expectations and will drop rapidly in the coming year. Meanwhile, both DBRS and Moody’s noted that performance is stabilizing. 

FirstKey Homes is set to issue an $871.6 million deal backed by loans on 1,827 income-producing properties, while Bridge Single-Family Rental Fund IV Aggregator is prepping its first SRF securitization. 

Daily MBS trading has been on the rise since April, a positive sign. It seems some investors are willing to buy and hold, but fear over what the Fed might do next rules the roost. 

Since the beginning of quantitative tightening in June, the Federal Reserve has been able to shed less than 20% of the agency MBS it had planned by this date.