When the pandemic struck this spring, non-QM sales in progress fell apart involving some heavy hitters like NewRez. Now those loan buyers are getting sued for reneging on their contracts.

An advisory panel has called for greater transparency around credit ratings. SEC officials say the reforms could be difficult to implement.

Arbor Realty Trust issued a $727.2 million non-agency multifamily MBS. For the most part, these deals are uncommon because the GSEs dominate the market.

The non-QM whole loan market appears to have turned the corner from its recent doldrums. Some bids are now close to par.

The industry wants the SEC to align disclosure norms for publicly registered non-agency MBS with those followed in private placements.

A non-QM MBS closed last week and deals from other issuers are in the works. A prime non-agency MBS with newly originated loans was also introduced.

After non-agency MBS issuance all but froze in March, issuers are beginning to return to the market. Neuberger Berman issued a non-QM MBS this week and others are working on deals as well.

The bulk of non-agency MBS currently being issued is backed by seasoned mortgages. Rating services are also adjusting criteria to account for the coronavirus.

Mortgage-related real estate investment trusts, including Redwood, have been hit hard by a wave of margin calls due to drastic declines in the value of their MBS. Redwood said it has met its margin calls so far.

A month ago, investors were gobbling up MBS with non-QMs. Now, the sector is shut down due to the upheaval caused by the coronavirus.