Non-agency MBS execution is competitive with agency MBS execution for purchase mortgages with loan-to-value ratios below 70 percent and credit scores above 740.
The $443 million non-agency MBS, Chases second of the year, is set to receive AAA ratings with credit enhancement ranging from 6.90 percent to 10 percent for the top tranches.
Reps. Shelley Moore Capito, R-WV and Sean Duffy, R-WI, respectively chairman and vice chairman of the subcommittee, had not viewed the CFPBs analysis on QM.
Feedback from residential servicers indicates that the number of new loan modifications on mortgages in non-agency MBS this year will be near levels seen last year.
Guaranty fees need to be raised by roughly 10 basis points in order for the pricing between agency and non-agency deals to be comparable, according to a new report.