Some debt service coverage ratio loan borrowers are deliberately going delinquent while they renovate a property to improve its long-term rental performance.

A massive influx of investor demand for business-purpose loans has prompted lenders to loosen underwriting standards for the asset class.

Poor quality appraisals and weak due diligence controls are leading to growing concern about appraisal values for non-QMs.

More extensive rehab projects and growing investor demand have pushed some lenders to consider getting more lenient with some standards for residential transition loans.

Issuance of expanded-credit MBS increased a hefty 40.6% during the first quarter of 2026, with investment-property mortgages making up a big chunk of the total. (Includes three data tables.)

Issuance of non-agency MBS backed by newly originated mortgages increased by 34.2% on a quarterly basis in the first quarter of 2026. (Includes data tables.)

Issuance of expanded-credit mortgage-backed securities declined during the fourth quarter of 2025, marking the first quarterly decline in issuance for the sector in two years. (Includes three data tables.)

Issuance of expanded-credit MBS increased by nearly 80% on an annual basis in 2025 to $75.91 billion. Prime non-agency MBS issuance was up nearly 40% to $45.19 billion. (Includes data table.)

Issuance in the first nine months of the year was up nearly 90% compared with the first nine months of 2024. (Includes three data tables.)

Expanded-credit MBS issuance rose by 25.4% from the first quarter to the second quarter, with mortgages for self-employed borrowers, interest-only loans and refinances driving the increase. (Includes three data tables.)