Khalil Kanaan, head of residential mortgage at LibreMax, an asset manager that has invested in home equity investments, said the products offer unlevered returns in the low double digits.

Loan applications are increasing as mortgage interest rates decline.

The new HEI securitization has borrowers with slightly better average credit scores compared to an issuance in April.

Carlyle, an investment firm, agreed to purchase up to $300 million of Unison's new equity-sharing mortgage products.

The five most active issuers were all nonbanks, led by Freedom Mortgage.

The investor count on rated securitizations from Unlock increased three- to four-fold compared with the unrated deal the firm issued in 2022.

Regulators will propose that large banks be required to hold capital against the unrealized gains and losses on MBS.

The issuance will bring Rocket’s securitization volume of closed-end second liens to $3.30 billion this year.

Purchase-money mortgages accounted for 82.5% of agency MBS issuance during August, though the refinance share is growing.

Previous industry changes — the Uniform Mortgage Data Program, the single security initiative and the transition away from the London Interbank Offered Rate — took longer than expected to put into place and caught some stakeholders flat-footed.