Issuance of prime non-agency MBS increased by more than 20% during the third quarter of 2026 while expanded-credit MBS held steady. (Includes data file.)

Many expanded-credit MBS are performing better than Fitch Ratings’ initial expectations. The rating service also completed a review of ratings on jumbo MBS, resulting in more limited upgrade activity.

Debt service coverage ratios are moving close to 1.0 but performance remains strong due to tight underwriting of borrowers.