Issuance of mortgage-backed securities with non-qualified loans continues at a brisk pace, with a new deal from New Residential Investment in the pipeline.

An affiliate of Oaktree Capital Management is set to issue its first mortgage-backed security with non-qualified loans. The $268.16 million issuance includes loans from two prominent lenders who haven’t been large players in the non-QM MBS market recently.

Lower GSE loan limit not a priority for SFIG; whole loans present alternative to non-agency MBS for investors; jumbo MBS issuance may wane with home price appreciation...

Prepayment rates on mortgage-backed securities with non-qualified mortgages have slowed due to interest rate trends and a shift in borrower characteristics, according to industry analysts.

Two nonbanks — Ellington Financial and MFA Financial — are increasing their emphasis on non-qualified mortgages, but with different strategies.

Carrington Mortgage Services loosens its underwriting guidelines and improves pricing for various expanded-credit products; Home Point Financial joins the expanded-credit market; Essent Group isn't interested in proving PMI for non-QMs...

Mortgage-backed securities with non-qualified mortgages look attractive to some real estate investment trusts. PennyMac Mortgage Investment Trust plans to join other REITs issuing non-QM MBS while officials at Chimera Investment said the firm is considering buying non-QM MBS from other issuers.

Seer Capital Management is set to issue its first mortgage-backed security with non-qualified loans. The New York-based company launched its non-QM program in 2013 and it owns HomeXpress Mortgage, a wholesale lender founded in 2016.

The ability-to-repay rule helped improve loan performance for non-qualified mortgages but a robust secondary market for the loans hasn’t developed, according to an analysis by the Consumer Financial Protection Bureau.

Angel Oak Companies set company records for originations of non-qualified mortgages in 2018 and officials expect more growth this year. “Non-QM is booming, we’re going to set an all-time record in December and we’ve set records each quarter in 2018,” said Tom Hutchens, senior vice president of sales and marketing at Angel Oak Mortgage Solutions. “We’re continuing to see more people participate in the market, which is a great thing.” Through the first three quarters of 2018, Angel Oak ...