Since 2020, borrower-paid costs have steadily increased and remain elevated, but new research suggests that policy changes could improve affordability.

Some 10 non-agency MBS have hit the market thus far in January, with issuance spread across loan types.

The Mortgage Bankers Association and other groups back a proposal from the FCC to modernize Telephone Consumer Protection Act rules.

Although holdings increased overall, two of the four largest players in the market reduced their holdings: Bank of America and Wells Fargo.

ARMs made up 15.9% of total first-lien originations in the third quarter, down from a 16.2% share in the second quarter.

Analysts noted that the non-agency MBS market will benefit from strong investor demand, including more new shelves participating in the sector.

Holdings of first-lien residential mortgages at banks and thrifts slightly increased by 0.4% during the third quarter of 2025. But two of the four largest players in the market reduced their holdings.

Brokers are feeling optimistic about 2026, due in part to the expansion of non-qualified mortgage offerings.

The non-qualified mortgage sector has exhibited significant performance pressure over the past two years. The sector has not yet faced material losses, though.

Production of adjustable-rate mortgages declined slightly during the third quarter of 2025, but were up 40.7% through the first nine months of the year.