A busy market: An affiliate of Neuberger Berman is prepping a $411.1 million expanded-credit MBS; Credit Suisse increased the number of lenders it's sourcing non-QMs from; and an affiliate of PIMCO issued another deal with seasoned non-QMs that were subject to clean-up calls.

The amount of outstanding subprime mortgages handled by a group of prominent servicers fell by 4.1% in 3Q19. Among the 15 processors, none increased their portfolios on a sequential basis. (Includes data chart.)

An SEC committee hosted a panel discussion in November regarding the compensation model for rating services. The regulator hasn't made a decision on whether reforms are needed to the issuer-pays model.

FSOC continues to focus on the risk posed by nonbanks, which are key players in the MBS market. But is the regulator worrying too much? Opinions differ.

Delinquencies continued to decline in the third quarter, helped by a strong employment market and economic growth. However, there are some signs that late payments might inch upwards. (Includes data chart.)

The SFA is eyeing changes to its due diligence review standards. Meanwhile, REITs are awash in cash like never before.

According to data from state regulators, the largest nonbanks in the mortgage space have approximately four times as much debt as equity.

Since 2006, only one rated whole business securitization has defaulted. Investors in the deals are protected by various features, including a model that isn't particularly reliant on issuer profits.

In a recent report, Fitch Ratings noted that shortfalls can occur when a mortgage is prepaid before the end of the month, causing only a partial collection of the interest owed by the borrower...

Shea Pallante, executive vice president of Sprout Mortgage, called the non-QM market a “sleeping giant.”