The voluntary scope aims to standardize practices among due diligence reviewers and also prevent a “race to the bottom.”

The rating service last week finalized a methodology update that will allow it to rate securitizations of home equity loans.

Excluding a one-off $5.69 billion issuance from Chase, securitization of home equity loans declined during the first quarter. Activity involving closed-end second liens held up while HELOC issuance fell. (Includes three data tables.)

Fitch placed a “deteriorating” outlook on the securitized second-lien market due to rising delinquencies. However, the rating service said that the sector is still performing within its base case expectations.

The Second Circuit Court of Appeals altered some of its original findings in a lawsuit dealing with MBS liability under the Employee Retirement Income Security Act.

Itasca Park issued its first non-agency MBS issuance this week and Blackstone made its return to the non-agency MBS market as an issuer.

Issuers are increasingly delivering GSE-eligible owner-occupied mortgages to non-agency MBS in a bid to diversify liquidity.

The comment period on a concept release from the SEC to revise disclosure requirements on MBS and ABS closed in December. Since then, SEC officials have held a number of meetings with industry groups.

After publishing new rating criteria for non-agency MBS, Fitch Ratings upgraded thousands of tranches.

The rapid rise in investor interest for home equity loan securitizations has drawn parallels to the rise of non-QM MBS post the 2008 crisis.