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 lender's gain-on-sale margin declined from 1.22% in the second quarter to 1.14% in the third quarter.

Redwood Trust reported a loss of $7.7 million for the third quarter of 2025.

Freddie Mac's income increased by 16.2% on a quarterly basis in the third quarter of 2025.

Refis accounted for 57.1% of mortgage applications last week.

The firms have issued a number of expanded-credit mortgage-backed securities.

Many expect issuance of both expanded-credit MBS and securitizations of home equity loans in 2026 to top the volume seen this year.