Provident Funding Associates is set to issue a non-agency MBS with mortgages eligible for sale to the GSEs. The types of loans in the deal differ from previous non-agency MBS packed with Fannie/Freddie-eligible mortgages.
A busy market: An affiliate of Neuberger Berman is prepping a $411.1 million expanded-credit MBS; Credit Suisse increased the number of lenders it's sourcing non-QMs from; and an affiliate of PIMCO issued another deal with seasoned non-QMs that were subject to clean-up calls.
The parent company of United Wholesale Mortgage was the top originator of mortgages in prime non-agency MBS issued in the third quarter. Underwriting standards haven’t changed much in the past year. (Includes two data charts.)
No publicly registered deal has been issued since the SEC tightened disclosure requirements in 2014. However, revisions contemplated by the agency could change all that.
Redwood’s mortgage banking income decreased in the third quarter as falling interest rates lessened demand for MBS. Execution rebounded in October after interest rates increased.
JPMorgan Chase Bank issued a deal this month that looks like it will meet requirements for favorable capital treatment by the OCC. The transactions could prompt similar issuance by other banks.
A proposal by the FDIC to decrease disclosure requirements for certain non-agency MBS issued by banks largely found support from industry participants. However, MBS investors and consumer advocates raised concerns.
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