“When you think about the [asset-based finance] world ... these are two of the hottest products that [investors want to get access to],” said Michael Nierenberg, chairman, CEO and president of Rithm Capital.

An affiliate of Invictus Capital Partners is set to issue a $707.4 million expanded-credit mortgage-backed security.

Holdings of both mortgage-backed securities and mortgages increased during the third quarter.

Much of the shift in income was due to unrealized gains on portfolios of loans and pieces for non-agency mortgage-backed securities due to spread tightening.

Pennymac is marketing a $426.5 million non-agency mortgage-backed security stocked with investment-property mortgages eligible for sale to the government-sponsored enterprises.

Pennymac was the top issuer of prime non-agency MBS in the third quarter.

David Spector, chairman and CEO of Pennymac Mortgage Investment Trust, said execution in the non-agency market is currently superior to delivering the loans to the GSEs.

“We, like any business, must eliminate positions that are not core, or otherwise, to mortgages and new home sales,” FHFA Director and Fannie Mae Chair Bill Pulte said of the GSE.

The total delinquency rate on FHA loans in Ginnie MBS hit 10.90% at the end of September, up 51 bps from the end of June.

The Mortgage Bankers Association is projecting a 25-bp rate cut by the Fed in December and another in the first quarter of 2026.