Income declined somewhat at the REIT in the first quarter and losses tied to the value of MBS holdings and hedging jumped compared with the first quarter, with extreme volatility early in the second quarter tied to tariff policies.

Goldman has issued two other HELOC securitizations since May 2024, leaning on loans from United Wholesale Mortgage.

Lenders tightened their underwriting standards somewhat in 2024 issuance, dv01 noted.

Delinquencies and loan modifications on securitized non-QMs resumed increasing in May. Issuance from 2023 is performing worse than prior vintages while deals from 2024 have benefited from improved underwriting.

A cornucopia of non-agency MBS hit the market in early July.

“By tearing down these onerous hurdles, we’re freeing professionals from a tangle of red tape that drove up costs, inhibited access to homeownership, and discouraged market participation,” said HUD Secretary Scott Turner.

Annaly is set to issue a $662.7 million MBS, its 13th expanded-credit deal of the year.

Jonathan Gould was the senior deputy comptroller and chief counsel at the OCC during the latter half of the first Trump administration.

PennyMac Mortgage Investment Trust started issuing non-agency MBS in November as part of an effort to boost its investments in credit-sensitive assets. The REIT is now one of the most active players in the space.

Researchers tracked ratings and defaults on non-agency MBS between 2013 and 2022, finding that Morningstar’s ratings were more conservative than ratings from the big three firms. However, Morningstar’s ratings produced more “false alarms” about potential defaults than the big firms.