The concerns, voiced by Granovskaya and other participants at the event, are tied to an expected decline in the supply of loans for non-agency MBS.

Some 22% of the loans in the MBS were originated by lenders unaffiliated with Angel Oak Companies.

Veteran loan broker Michael Foote called it, “Good marketing more than anything, but they’ll just stack the loans and then sell them as soon as the new loans can be delivered…

Keith Lind, executive chairman and president of Acra Lending, an early pioneer in the sector, echoed Pallante’s view, noting there’s a new set of investors for non-QMs.

The share of investment-property mortgages on the LoanNEX platform increased to 35% in August from 25% in the first quarter of 2021...

The move marks a change of pace for UWM, which has been issuing its own non-agency MBS with GSE-eligible mortgages for investment properties.

The CEO detailed a variety of plans, from establishing asset management operations to venturing into home-equity products and expanding its footprint in business-purpose lending.

The proprietary reverse mortgages in the MBS were originated by Reverse Mortgage Funding and Nationwide Equities.

Between the start of 2020 and the end of June 2021, AmWest ranked third among contributors to expanded-credit MBS.

Some $20 billion of GSE-eligible mortgages are on track to flow into non-agency MBS this year.