FHFA Director Mark Calabria plans to take steps to help non-agency market players better compete with the government-sponsored enterprises. However, lowering conforming loan limits isn’t part of the plan.

Carrington Mortgage Services is prepping its first MBS backed by non-qualified mortgages, which differ from loans in expanded-credit products from other issuers.

Expanded-credit mortgage originations declined for the second consecutive quarter at the end of March. Demand from borrowers was down but lenders remain optimistic about the sector.

An affiliate of Angelo Gordon plans to enter the non-agency MBS market with a deal backed by non-QMs. Western Asset Management priced one of the largest expanded-credit MBS and more deals are in the works.

Originations of non-agency jumbo mortgages declined by 1.5% in the first quarter though the sector gained some market share as total first-lien originations fell by an even greater amount.

An affiliate of American Mortgage Investment Partners Management is set to issue its second non-agency MBS backed solely by loans originated by Visio Financial Services.

Redwood Trust's margins on residential mortgage activity increased in the first quarter due to strong demand in the secondary market for expanded-credit mortgages. Officials are also optimistic about how the FHFA could help private capital take share from the GSEs.

The Consumer Financial Protection Bureau is conducting targeted exams of lenders that originate non-qualified mortgages, according to a former CFPB official. 

Issuance of prime non-agency MBS has slowed significantly. A pending deal from Wells Fargo is only the second issuance of 2Q19, though industry participants suggest that demand from investors is increasing.