S&P lost a little market share in rating newly issued ABS but remained the top provider in the first quarter. Fitch had a similar experience in the non-agency MBS market. (Includes two data tables.)

Loans to foreign nationals are increasing in the non-agency MBS market, but inherent risks in the asset present ratings challenges.

There are plenty of buyers for non-QMs these days. And coupled with continued strong home values throughout most of the nation, sales of early payment default mortgages are not proving to be a burden.

The decline was driven by conventional-conforming mortgages and government-insured mortgages. The securitization rate for non-agency mortgages actually jumped in the first quarter. (Includes data table.)

Analysts are not “raising alarm bells” yet despite increasing delinquency rates in the non-QM mortgage-backed securities sector.

Lenders are compensating for climate change by requiring higher downpayments for properties in areas of higher flood risk and increasing subordination levels in securities with a higher concentration of mortgages in flood zones.

Invictus has launched a new business to provide insurance companies with access to residential loans.

Close to half of the prime non-agency MBS volume in the market since early May has been in GSE-eligible mortgages. Rocket Mortgage is the latest issuer with a GSE-eligible offering, including a number of loans with eNotes.

Initial partners for Figure’s new marketplace include The Loan Store, Movement Mortgage, Bayview Asset Management and Saluda Grade.

As AI becomes ubiquitous in both the origination and securitization of loans, the U.S. regulatory framework is likely to evolve closer to the stricter rules used in the European Union.