The impairment rate on securitized non-qualified mortgages increased to 3.8% at the end of September...

Angel Oak ranked second with EC MBS issuance of $579.6 million...

Issuance volume among some expanded-credit MBS contributors nearly doubled in the third quarter while others avoided the market. Issuers and lenders continue to face volatility in demand from MBS investors. (Includes three data charts.)

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

Activity at the GSEs is moving away from areas where the non-agency market could compete with Fannie Mae and Freddie Mac. Cash-out refi business could be the next category to take a hit as FHFA has directed the GSEs to increase upfront pricing. (Includes data chart.)

First Republic Bank isn’t increasing its interest rates for jumbo mortgages at the same pace that the Fed is increasing interest rates, leading to lower margins for the bank.

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.

Redwood acquisitions of jumbo mortgages declined by more than 70% on a sequential basis in the third quarter. Officials at the REIT suggested that Redwood will continue to limit loan acquisitions until market dynamics improve.

Only one deal hit the market in the past two weeks and the issuance pipeline isn’t looking particularly strong.

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.