A new, somewhat atypical, non-agency mortgage-backed security from JPMorgan Chase includes a large share of non-qualified mortgages and no fixed-rate mortgages. JPMorgan Mortgage Trust 2017-5 is a $671.7 million deal that received preliminary AAA ratings last week from Fitch Ratings, Kroll Bond Rating Agency and Moody’s Investors Service. The first four deals from Chase this year largely stuck with QMs and included a fair amount of mortgages eligible for sale to the ...

Issuance of nonprime mortgage-backed securities picked up in November with new deals from Angel Oak Capital Advisors and Invictus Capital Partners. A $210.2 million MBS from Angel Oak is scheduled to close on Nov. 28 and a $253.1 million deal from Invictus closed last week. The deal from Angel Oak is the third nonprime MBS of the year from the firm and follows closely after a nonprime MBS from Deephaven Mortgage where Angel Oak contributed mortgages with an unpaid ...

Consumer advocates are pushing for changes that could impact the non-agency market, including raising concerns about the use of Federal Home Loan Bank advances and calling for revisions to standards for qualified mortgages. In a letter this month to the Federal Housing Finance Agency, a group of 136 consumer advocates were critical of Starwood Property Trust’s recently disclosed use of FHLBank advances to fund acquisitions of non-QMs. Starwood is a real estate investment ...

Underwriting standards for subprime mortgages tightened somewhat in the third quarter, according to a survey by the Federal Reserve. One of the four banks surveyed by the Fed reported tightening underwriting standards for subprime mortgages in the third quarter while standards at the other three banks were unchanged compared with the previous quarter.The bankruptcy of the parent company of Ditech Financial is unlikely to have an impact on ... [Includes two briefs]

Commercial banks and savings institutions boosted their holdings of residential MBS to a record $1.839 trillion during the third quarter, according to a new Inside MBS & ABS ranking and analysis.

More than three years after standards for qualified mortgages took effect, investors in the non-agency MBS market appear to be getting more comfortable with products that fall outside its bounda-ries. JPMorgan Chase is preparing to issue a large MBS backed by non-QMs that’s similar to deals from several nonbank issuers.

Ginnie Mae has been without a permanent president for roughly 10 months now, but so far inves-tors don’t seem to be balking at buying agency MBS. But that doesn’t mean the market – as well as stakeholders – aren’t getting nervous about the situation.

Consumer debt reached a new high at the end of the third quarter of 2017, surpassing levels seen in the run-up to the financial crisis and prompting concerns about the systemic risk to MBS and ABS investors posed by consumer leverage.

Walter Investment Management Corp.’s planned Chapter 11 reorganization is not likely to affect the credit ratings of MBS backed by loans serviced by its subsidiary Ditech Financial, according to an analysis by Fitch Ratings.

Industry fundamentals in the auto ABS sector are improving in the wake of the hurricanes, ac-cording to a report by a pair of analysts at Wells Fargo Securities.