Chase and Rocket are offering separate non-agency MBS sized at more than $1.0 billion each and stocked with jumbo mortgages. There’s also plenty of GSE-eligible loans for investment properties in the market.

Mixed trends for non-agency mortgage performance; Pretium acquires fix-and-flip lender Anchor; Guild offering no downpayment jumbos to doctors; Sachem ups profits in 3Q; new home-equity lender raises capital.

Securitizing loans originated by Genesis could generate returns of nearly 20% for New Residential. The acquisition is set to close later this year.

There’s plenty of non-agency MBS with GSE-eligible mortgages for investment properties, along with prime jumbo deals, expanded-credit mortgages and even some esoteric collateral.

Non-QM lender Newfi changing hands; Redwood invests in due diligence provider Canopy; Sprout offers bank statement analysis.

Prime jumbos and loans eligible for sale to the GSEs helped propel the non-agency MBS market to a post-2010 record in the third quarter of 2021. Issuance of expanded-credit MBS lagged. (Includes data chart.)

The supply of mortgages for non-agency MBS is expected to decline, leading to concerns that industry participants might loosen underwriting standards to prop up volumes.

AGMIT sold off the last of its investments in commercial mortgages in September, with plans to increase investments in non-QMs and other non-agency mortgages.

The share of securitized non-QMs that are delinquent or modified increased in August for the first time since February. Still, industry analysts are comfortable with the long-term outlook for performance.

The switch in QM standards that many lenders had to make in July didn’t have a major impact on spreads between interest rates on mortgages and the average prime offer rate. Most mortgages continue to receive safe harbor QM status.