Brian Devlin, president and CEO of Arc Home, said investor appetite for non-QMs is the strongest it’s ever been.

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

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 Mortgage Action Alliance issued a call to action to support H.R. 3507, the Yes in My Backyard Act.

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

Redfin reports that starter homes are 4% costlier than last year while the MBA says overall homebuyer affordability improved in the short term.

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

“They’re probably getting it at a good price,” said one nonprime executive...