A class-action lawsuit against the issuer of a credit card ABS has the potential to eliminate the preemption banks rely on when contributing assets to MBS and ABS.

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.

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

The regulator has overturned disciplinary sanctions levied by the Public Com-pany Accounting Oversight Board against an auditor of Thornburg Mortgage, now defunct.

To date, the revival in the new “subprime” mortgage market has been driven exclusively by nonbank originators and aggregators, but now there’s a depository in the pond: Reliant Ban-corp, Brentwood, TN.

GSE Reform Hearings, Already?; The UMBS is Coming; NAR Pushes ‘Utility’ Plan…

Redwood Trust is set to issue the first prime non-agency MBS the market has seen in more than a month. Issuance has all but grounded to a halt after October, but industry analysts expect more volume to flow following the Redwood deal.