MBA president Dave Stevens is concerned that events could soon overtake policy makers and force an “imperfect solution” to Fannie Mae and Freddie Mac.

The jumbo MBS market has another new issuer: Nomura. But the credit enhancement on its first deal was increased due to geographic concentration risk.

As with previous MBS issued by Springleaf, the mortgages in the security were originated by firms owned by Fortress Investment Group.

Credit Suisse issued a non-agency jumbo MBS backed predominantly by seasoned mortgages from First Republic Bank.

Although the recent spike in rates spooked some players in the non-agency market, conduits like Redwood Trust and Credit Suisse are still in the hunt for new customers.

Spreads have widened significantly on non-agency jumbo MBS in recent weeks, cutting into issuers’ profits.

During an Inside Mortgage Finance webinar on Thursday, participants from expressed frustration on the ability to get new jumbo MBS deals because of the recent rapid rise in rates.

Implementation of state-specific servicing standards like California’s would impose "divergent and conflicting standards" that will add costs to future home buyers and create confusion, said one MBA official.

Some non-agency participants have called for an immediate return to conforming loan limits of $417,000, which were in place in 2008 before Congress established “emergency” loan limits for high-cost areas.

“Confusion and uncertainty around representations and warranties standards continue to cause lenders to add their own overlays to the existing GSE credit standards,” said MBA vice chairman Bill Cosgrove.