Prospects for non-agency MBS issuance in 2022 look mixed, with expanded-credit activity expected to increase while volume involving non-agency jumbos and GSE-eligible loans could decline.

Western Asset Mortgage Capital plans to shed investments in commercial mortgages and shift to residential assets, including non-QMs. The REIT was taking losses on commercial investments.

Non-agency MBS issuers are off to a fast start this year, with four deals marketing this week. The MBS are backed by non-agency jumbos and GSE-eligible mortgages for investment properties.

Officials at Velocity said the acquisition of an FHA multifamily lender will help to expand the company’s product offerings and serve as a hedge for its traditional focus on business-purpose lending.

New Residential set to issue single-family rental securitization; DBRS accepts Phoenix Collateral Advisors as due-diligence provider.

A Florida-based investor is touting the profits available from commercial MBS with distressed malls. The trade runs counter to the “mall shorts” that helped generate massive returns for some investors last year.

Industry participants are confident that the non-agency market can absorb some GSE mortgages that will otherwise be subject to higher fees; SFA highlights ABS LIBOR complication; Credit Suisse modifies MBS issued in 2019; New Residential set to issue single-family rental securitization.

Lenders are increasingly using evaluations to determine home values rather than completing full appraisals. The evaluations carry risks for both lenders and borrowers, according to a recent report by the Government Accountability Office.

When lenders opt for an evaluation rather than an appraisal, they often use AVMs...

Blue River Mortgage III, Angelo Gordon’s conduit, started acquiring Fannie/Freddie-eligible loans for investment properties last year.