Non-agency industry participants are speculating how the non-qualified mortgage market would react if the government-sponsored enterprises go private.

In the third quarter of 2025, Ellington Financial was active with non-qualified mortgage securitizations.

Home improvement ABS are attractive for investors because borrowers have high credit scores and low delinquency rates.

“When you think about the [asset-based finance] world ... these are two of the hottest products that [investors want to get access to],” said Michael Nierenberg, chairman, CEO and president of Rithm Capital.

Pennymac was the top issuer of prime non-agency MBS in the third quarter.

During the third quarter of 2025, Pennymac once again passed JPMorgan Chase as the largest contributor to prime non-agency mortgage-backed securities. (Includes three data tables.)

Annaly Capital Management and its subsidiary, Onslow Bay Financial, had a strong third quarter, with $2.3 billion in locks of expanded-credit mortgages.

The company has expanded its issuance of non-agency MBS beyond GSE-eligible mortgages for non-owner-occupied properties, adding traditional GSE mortgages to the mix.

Redwood Trust’s core operations were profitable in the third quarter, including record mortgage acquisitions. However, sales of legacy assets prompted a loss at the real estate investment trust.

The mortgage-banking division of Rithm Capital originated $1.0 billion of non-qualified mortgages in the third quarter, up 42.9% from the previous quarter.