The market for MBS with non-qualified mortgages is growing by leaps and bounds. However, there is some skepticism about whether there’s enough demand to support $50 billion in annual issuance.

The case is one of the rare instances in which an individual has been held accountable for actions taken during the subprime mortgage crisis.

Deal volumes in the non-agency MBS market are elevated as issuers work to meet investor demand. Angel Oak, Chase and Invictus are bringing large deals and more issuance is in the pipeline.

Noting that not a single SEC-registered non-agency MBS has been issued since disclosure requirements were tightened in 2014, the regulator is planning to revisit the standards.

Citadel Servicing, which played a key role in the rebirth of nonprime lending this decade, will have new owners soon. But will the firm finally tap the securitization market? Stay tuned.

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.

Market participants are finding it difficult to move away from LIBOR in the absence of an alternative rate and because of document-related issues.

Issuers and investors in the securities market are divided on what exactly should be done with the qualified mortgage “patch.”