Issuance of non-agency MBS increased by nearly 50% on an annual basis in 2019, largely due to expanded-credit mortgages. (Includes data chart.)

Issuance of prime non-agency MBS will likely increase this year, according to projections by industry analysts. The big wildcard is how FHFA’s efforts to reduce the GSEs’ footprint will impact the non-agency market.

After a lull in December, issuers are bringing non-agency MBS to the market. Redwood Trust is planning a deal with seasoned mortgages while New Residential has an expanded-credit MBS.