Issuance of prime non-agency MBS dropped in the second quarter while expanded-credit activity was up 5% from the first quarter. (Includes data chart.)

Delinquencies and loan modifications on non-agency mortgages increased in May, but at a slower rate than the sharp increase in April. Delinquencies are much higher on non-QMs than jumbos.

Wells Fargo is maintaining its steady issuance of prime non-agency MBS while a pending deal from Neuberger Berman is much larger than the expanded-credit MBS the firm issued in May.

Regulators delay review of risk-retention requirements for securitized mortgages; Wells Fargo updates underwriting standards for jumbo mortgages originated through the retail channel.

The proposal could eliminate GSE eligibility as a standard for a loan to be deemed a qualified mortgage. The regulator aims to level the playing field between the non-agency market and Fannie/Freddie.

Eleven expanded-credit MBS have been introduced since June 15, with a total unpaid principal balance of $3.4 billion.

Three prime non-agency deals were brought to market at the end of June. One of them is backed by GSE-eligible investment-property loans.

The naysayers doubt nonbank originators and servicers have sufficient capital and liquidity to weather a storm.

A recent cash infusion will help MFA Financial revive its first ever non-QM MBS. The deal had been put on hold because of the pandemic.

Sales of non-QMs at distressed prices accounted for a large share of the nearly $65 million loss Impac took in the first quarter.