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.

It may seem counterintuitive, but MBS backed by reperforming loans, and thus not eligible to be traded in the to-be-announced market, are the ideal assets in collateralized mortgage obligation deals. According to a report from Stifel’s fixed income strategy division, the reason is simple — most modified loans are unlikely to be refinanced as they have “a unique and desirable prepayment profile.” Borrowers with modified loans have already had their rates dramatically reduced. They're unlikely to ...