Verus Mortgage Capital and Chimera Investment Corp. are both set to issue non-agency mortgage-backed securities backed solely by loans for investment properties. The types of mortgages in the two deals differ. Loans in the Chimera MBS were eligible for delivery to the government-sponsored enterprises, but that was not the case with the Verus deal.

Redwood Trust is developing an outlet for mortgages that differ somewhat from traditional whole-loan sales. Officials at the real estate in-vestment trust have been working on the effort for months but haven’t formalized anything yet.

Goldman Sachs is set to issue a non-agency mortgage-backed security stacked with jumbo loans eligible for sale to the government-sponsored enterprises. The deal will mark the bank’s return to the prime non-agency MBS market. The deal size is $230.60 million, according to presale reports published last week by DBRS and Moody’s Investors Service.

Lenders originating fix-and-flip loans and mortgages for single-family investment properties are seeing strong demand from investors in the secondary market.

Issuance of mortgage-backed securities with non-qualified loans continues at a brisk pace, with a new deal from New Residential Investment in the pipeline.

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.