In an effort to receive favorable capital treatment for credit-risk transfer on non-agency mortgages, JPMorgan Chase is preparing a unique deal.

Non-agency MBS issuers are focusing on deals backed by a single product, because they are a better gauge of prepayment speeds.

Some investors prefer buying non-agency mortgages via whole loan transactions rather than stocked in MBS. Whole loans offer better yields and more loan information.

FirstKey Mortgage is prepping a rare residential MBS backed entirely by manufactured-home loans.

Issuers and investors in the securities market are divided on what exactly should be done with the qualified mortgage “patch.”

Following Chase, Citi is issuing MBS backed by non-QMs. The participation of two big banks is an encouraging sign for the sector.

Noting strong demand for non-agency MBS, issuers are getting creative with the types of loans they package into deals. JPMorgan, Credit Suisse, Angelo Gordon and Goldman Sachs are all entering new sectors.

PIMCO is set to issue a non-agency MBS with loans sourced from non-QM deals issued by Lone Star Funds. The older MBS were subject to clean-up calls, allowing PIMCO to re-package the loans.

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

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