Issuance of prime non-agency MBS linked to non-agency jumbo mortgages increased by 13.4% during the second quarter of to $7.95 billion.

ARMs accounted for 70% of Chase's non-agency production in July.

PennyMac originated nearly $230.0 million of mortgages in the pending MBS.

William Lansing, CEO of Fair Isaac Corp., said the move would encourage lenders to shop for the most lenient credit score in order to qualify more borrowers for GSE loans.

ARMs accounted for 9.5% of residential mortgages locked in July, according to Optimal Blue.

Among the top 10 agency MBS issuers in July, just one was owned by a federally insured depository: Amerihome.

Some $54.47 billion of FHA purchase mortgages were included in Ginnie Mae mortgage-backed securities issued in the second quarter, up 28.9% from the previous quarter.

The whole-loan sales come even though Acra’s new owner, BlackRock Financial, has deep experience with non-agency securitization.

The real estate investment trust focuses on acquiring non-qualified mortgages and originating business-purpose loans.

The firm plans to be a programmatic issuer of expanded-credit mortgage-backed securities following the acquisition of HomeXpress.