Non-agency MBS backed by seasoned collateral, mostly nonperforming and re-performing loans, accounted for 54.3% of new issuance in the second quarter. Securitization of newly originated loans slipped 13.5% from the previous period.

With interest rates falling, refis have spiked, creating a wave of principal pre-payments that the Fed has used to cut its MBS holdings.

Investors in securitized products have proposed various standards for establishing a system for communication among bondholders and issuers.

Deer Park Road Management Company was fined for undervaluing non-agency MBS in a hedge fund. The action is aimed at discouraging artificially smooth performance reporting.

The company is set to issue the first post-crisis non-agency MBS stocked entirely with home-equity lines of credit. Fitch assigned preliminary AAA ratings to the deal.

Issuance of MBS backed by non-QMs remains healthy while prime non-agency MBS activity has slowed.

The subprime crisis of 2008 may be over but court cases tied to MBS underwriting misdeeds continue to linger. The latest action pits the FHFA against Wells Fargo for one of its acquisitions: Wachovia.

In the MBS Grapevine this week: The lowest rates ever (maybe) and concerns about future GSE earnings from regulator Mark Calabria. Also, Ginnie Mae seeks committed capital.

FirstKey Mortgage plans to issue a non-agency MBS stocked entirely with home-equity lines of credit, the first of its kind post-crisis.