It’s the first jumbo MBS from Redwood since 2015 to include full advancing.

MSR values are coming down as interest rates decline.

After a lull around Labor Day, non-agency MBS issuance is set to flow with expanded-credit deals, prime non-agency MBS and a HELOC securitization.

Defaults on home equity investment contracts can occur if the borrower’s mortgage is foreclosed on or if the borrower fails to maintain payments for taxes and insurance on the home.

The loans backing the security were originated by A&D or its third-party correspondents.

The new $413.41 million MBS includes loans underwritten to bank statements and debt service coverage ratios.

Note: Truist Bank upped its Ginnie pass-through investment by $9.84 billion to $22.56 billion.

Hurricane Beryl prompted an estimated 10,000 new delinquencies in the Houston area in July, according to ICE.

Fannie Mae and Freddie Mac issued a combined $2.34 billion in CRT securities, excluding reinsurance deals, in the second quarter. That was down 18.0% from the first quarter.

To this point, Acra has contributed to MBS from others and sold off its non-QM production as whole loans.