An affiliate of Oaktree Capital Management is set to issue its first mortgage-backed security with non-qualified loans. The $268.16 million issuance includes loans from two prominent lenders who haven’t been large players in the non-QM MBS market recently.

Moody’s Investors Service has flagged risks related to non-agency players using the automated underwriting tools developed by the government-sponsored enterprises to produce loans underlying private-label mortgage-backed securities.

The representations and warranties provided on new non-agency mortgage-backed securities are receiving renewed attention from industry participants. Issuers of prime jumbo and expanded-credit MBS, particularly, have been subject to criticism.

Lower GSE loan limit not a priority for SFIG; whole loans present alternative to non-agency MBS for investors; jumbo MBS issuance may wane with home price appreciation...

Records are falling like dominoes in the nonprime mortgage-backed security market. Verus Mortgage Capital last week issued a $664.09 million deal — breaking a volume record set by Angel Oak Companies a month ago.

Prepayment rates on mortgage-backed securities with non-qualified mortgages have slowed due to interest rate trends and a shift in borrower characteristics, according to industry analysts.

The Structured Finance Industry Group’s years-long effort to reform practices in the non-agency mortgage-backed security market is nearly complete. However, it’s not clear whether the practices will be widely adopted by MBS issuers.

Fannie Mae and Freddie Mac continue to let their holdings of nonprime mortgages run off, with some differences in the rate at which the holdings are diminishing, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart]

The pricing offered in the non-agency market for certain loans eligible for sale to the government-sponsored enterprises isn’t as attractive to sellers as it once was, according to industry participants.

Mortgage-backed securities with non-qualified mortgages look attractive to some real estate investment trusts. PennyMac Mortgage Investment Trust plans to join other REITs issuing non-QM MBS while officials at Chimera Investment said the firm is considering buying non-QM MBS from other issuers.