Non-agency MBS issuers are off to a fast start this year, with four deals marketing this week. The MBS are backed by non-agency jumbos and GSE-eligible mortgages for investment properties.

Officials at Velocity said the acquisition of an FHA multifamily lender will help to expand the company’s product offerings and serve as a hedge for its traditional focus on business-purpose lending.

New Residential set to issue single-family rental securitization; DBRS accepts Phoenix Collateral Advisors as due-diligence provider.

In a familiar refrain, participants in the non-QM market suggest the sector is ready for takeoff. Still, technology in the non-QM market lags compared with the GSEs.

Some non-agency lenders are widening the credit box to uncomfortable levels, prompting discussion at the ABS East conference this week.

Wells Fargo was the only bank among the top 10 holders of first liens to reduce its portfolio during the third quarter. The bank’s holdings are also down sharply on an annual basis. (Includes data chart.)

Issuers of prime non-agency MBS are increasingly removing loans subject to third-party due diligence reviews from the final MBS pools. Kroll Bond Rating Agency said the practice is a slippery slope.

ARM lending ticked up during the third quarter though the ARM share of total originations remains well below the level seen in 2019. (Includes data chart.)

With GSE loan limits in high-cost areas nearing $1 million in 2022, Redwood Trust called on the FHFA to use its powers to place limits on the GSEs’ acquisitions of high-balance mortgages.

QM revisions not on CFPB’s agenda; regulators leave risk-retention standards as is; forbearance on non-agency loans increase; non-agency MBS issuance update; Deephaven allowing remote appraisals for non-QMs.