Buyouts from Ginnie Mae MBS have replaced vintage subprime mortgages as a major source of nonperforming loans, according to industry participants.

Sterling will account for 58% of the loans in the MBS, Citadel 23%...

A number of firms regularly issue one non-QM deal per quarter. Two transactions is less common...

The planned Bunker Hill Loan Depository Trust 2019-1 from Oaktree Funding will be stocked with non-QMs along with business-purpose mortgages.

There was some speculation before the vote that SIFMA might delay the guidelines or otherwise hinder UMBS issuance, but the vote on Wednesday was passed with a “significant majority,” according to SIFMA.

Among the four main mortgage products, only originations of expanded-credit loans increased in 2018. Originations of expanded-credit mortgages rose 20.2% to $45.2 billion last year, according to estimates by Inside Mortgage Finance. Total first-lien production declined by 9.9% during the year.

Disclosures to investors in post-crisis non-agency MBS regarding potential breaches of representations and warranties have been inadequate, according to Moody’s Investors Service.

Industry participants see promise in credit-risk transfer transactions beyond the government-sponsored enterprises, with possible markets developing involving Ginnie Mae, banks, credit cards and auto loans.

The Structured Finance Industry Group plans to change its tactics with policymakers, said Michael Bright, the president and CEO of the trade group.

Industry groups have once again requested federal regulators delay a new accounting standard for credit losses. The Current Expected Credit Loss standard is scheduled to be implemented on a phased-in basis beginning in January.