Angel Oak issued two non-QM MBS earlier this year that each topped $600 million. The new offering is sized at $353 million.

Industry analysts attribute the rise to a search for yield by investors along with increased acceptance of non-QMs in the investor community.

After the transaction closes, business-purpose lending investments will account for more than 15% of Redwood's investment portfolio, up from a 4% share.

Those in favor of the concept include: JPMorgan Chase, PennyMac Financial Services, the Housing Policy Council and the Structured Finance Association…

The new MBS differs in some ways from previous expanded-credit issuance from Annaly, including a reduced reliance on mortgages from Banc of California and an increase in investment-property loans.

Expanded-credit MBS issuance (the sum of nonprime and Alt A) hit $9.90 billion in the third quarter, a 60.8% jump from the previous period.

 Fitch said the referenced mortgages will remain on balance sheet as unencumbered assets of JPMorgan Chase.

Although Brian Montgomery has been sworn in, he still faces a hearing in the Senate. Meanwhile, the Senate’s time might be taken up with a possible impeachment trial…

Cagney’s name should be familiar to mortgage professionals. He also founded fintech lender SoFi…