As much as $20 billion of GSE-eligible mortgages could go into non-agency MBS annually due to new restrictions on GSE acquisitions of mortgages for investment properties and second homes.

It marks the first residential MBS rated by Kroll that aligns with a social bond framework. Fitch Ratings also rated the deal, though the firm appeared to be somewhat less impressed.

In April, issuers offered $4.95 billion of prime non-agency MBS across nine deals. Meanwhile, only two expanded-credit MBS hit the market, totaling $735.58 million.

PR Mortgage Investment is set to issue its first jumbo MBS and Bayview Asset Management revised its strategy for the sector.

Prime non-agency MBS with newly originated mortgages continue to hit the market while expanded-credit issuers are struggling to source loans.

Issuers of expanded-credit MBS have incentives to complete clean-up calls on seasoned deals and repackage the collateral into new securitizations.

Declines in Ginnie Mae and GSE portfolios resulted in the overall loans in forbearance falling to a 10-month low.

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.