The latest expanded-credit MBS from the Hollywood, FL-based lender is smaller than previous transactions from the firm.

Facing continuous losses, Altisource Asset Management has tightened its underwriting standards. Meanwhile, management at AG Mortgage Investment Trust believes there will be opportunities at both the origination and aggregation level in the non-agency market.

Two of the deals are backed by investor debt service coverage ratio mortgages. There is also a 100% HELOC transaction in the works.

It’s been a tough year for non-QM shops as lenders adjust to a new rate-driven reality. Company closings appear to be picking up, but some believe the worst of it might be over. The latest to cease originations: Athas.

Demand for non-QMs in the secondary market remains weak. Investors are concerned about the prepayment profile of the loans, among other issues.

Annaly was the top issuer of non-agency MBS in the third quarter. The REIT had to retain more of its issuance than usual due to weak investor demand.

Non-QM impairment rate increases in September; Angel Oak launches ETF with focus on non-agency MBS investments; new correspondent lender focusing on non-QMs; Go Mortgage offers non-QM construction loan.

Issuance of prime non-agency MBS declined by nearly 80% from the second to the third quarter. Expanded-credit MBS issuance also wavered, though at a much slower pace.

Debt service coverage ratio loans for investment properties are starting to look more risky as the Fed works to address inflation. Still, activity in the sector is increasing.

Sterling Bank and Trust paid $6 million to settle charges from the OCC regarding a now-shuttered non-QM program. Investigations by the DOJ and SEC are ongoing.