An affiliate of Angelo Gordon is set to issue its first non-QM MBS with what could be a trend-setter: many of the loans were originated by a CDFI. Such loans are exempt from the ATR and risk-retention standards.
The latest expanded-credit MBS from Angel Oak will be somewhat smaller than the first two deals the firm issued this year. The deal also includes a higher share of mortgages underwritten with 12 months of bank statements.
Participants in the non-agency market are looking forward to the end of the “GSE patch,” anticipating significant increases in non-QM activity as long as federal regulators provide certainty regarding the rules of the road.
An affiliate of Angelo Gordon plans to enter the non-agency MBS market with a deal backed by non-QMs. Western Asset Management priced one of the largest expanded-credit MBS and more deals are in the works.
360 mortgage plans to originate $1 billion of mortgages that don’t require verification of a borrower’s income or assets. The pilot program is limited to non-owner-occupied investment properties, which aren’t subject to ATR requirements.