Records are falling like dominoes in the nonprime mortgage-backed security market. Verus Mortgage Capital last week issued a $664.09 million deal — breaking a volume record set by Angel Oak Companies a month ago.

Prepayment rates on mortgage-backed securities with non-qualified mortgages have slowed due to interest rate trends and a shift in borrower characteristics, according to industry analysts.

Two nonbanks — Ellington Financial and MFA Financial — are increasing their emphasis on non-qualified mortgages, but with different strategies.

The Structured Finance Industry Group’s years-long effort to reform practices in the non-agency mortgage-backed security market is nearly complete. However, it’s not clear whether the practices will be widely adopted by MBS issuers.

Originations of expanded-credit mortgages increased 20.2% in 2018 and market share for the sector also grew, according to a new ranking and analysis by Inside Nonconforming Markets. [Includes one data chart]

A roundup of stories covering the government mortgage sector.

Lenders will no longer be able to edit appraisals in FHA’s Electronic Appraisal Delivery portal. They will have to submit a corrected appraisal to update the field.

The Mortgage Bankers Association has urged policymakers to strengthen the ability of Ginnie Mae to supervise independent mortgage bankers.

Concerned with the increasing number of nonbank lenders in the mortgage market and tight liquidity conditions, Ginnie Mae has started developing stress tests for its largest issuers.

Lawmakers and mortgage market players are watching whether the Trump administration will petition the U.S. Supreme Court to reverse a circuit court decision extending medical and disability benefits to war veterans who fell ill due to exposure to Agent Orange while serving in the territorial waters of Vietnam.