The Federal Reserve wants to continue buying agency MBS at its current pace, which should keep rates and spreads down for the foreseeable future.

Goldman Sachs, JPMorgan Chase and Redwood Trust ramped up issuance of jumbo MBS in recent weeks, while other firms in the sector have still not fully recovered from COVID volatility.

A market maker in non-agency jumbos, Wells Fargo has reopened its cash window, at least by a crack or two.

Originators of non-qualified mortgages are selling product in smaller batches and as whole loans. The reason: better execution than delivering them into MBS.

Angel Oak, a big player in the non-QM market, sees better days ahead, with securitzations leading the way. Fundings at the firm are nearing pre-pandemic levels.

Issuers of expanded-credit MBS haven’t been able to stock deals with new production while one of the largest post-2010 prime non-agency MBS hit the market this week.

Issuance of prime jumbo non-agency MBS was up in 2020 despite a soft fourth quarter, but the expanded-credit mortgage sector lagged, as did securitization of reperforming loans. (Includes three data charts.)

Three new non-agency MBS were introduced in the market recently. Two of the deals are backed by mortgages for investment properties.

Securitization of non-qualified mortgages is generating healthy profits. However, issuers face a dilemma: Originations of the product have slowed.

Issuers of prime non-agency MBS are completing deals with mortgages originated after the market volatility of March while expanded-credit MBS continue to be stocked with older loans.