The majority of loans in expanded-credit mortgage-backed securities are adjustable-rate mortgages, while such loans are few and far between in prime non-agency MBS, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]
More competition is coming into the nascent business of aggregating non-qualified mortgages and issuing mortgage-backed securities drawn by the market’s potential for profitable growth.
Redwood Trust, which helped pioneer the return of the jumbo mortgage-backed securities market earlier in the decade, reported net earnings of $33.0 million for the second quarter, down 29.7 percent from the previous period.