Non-Agency MBS

Browse articles from all of our Newsletters related to Non-Agency MBS.

December 14, 2018 - Inside Nonconforming Markets

Issuers Bring MBS Close to Year End

With 2018 winding down, issuers of non-agency mortgage-backed securities introduced two new deals this week. Neuberger Berman is set to issue its second expanded credit MBS of the year while Verus Mortgage Capital is planning its second deal backed by nonprime loans for investment properties. Neuberger Berman’s Homeward Opportunities Fund I Trust 2018-2 will be a $320.1 million deal and Verus Securitization Trust 2018-INV2 will be a $254.8 million issuance. Sprout Mortgage ...

December 14, 2018 - Inside Nonconforming Markets

Outlook for Prime Non-Agency MBS Issuance Closely Connected with GSE Pricing, Tools

Issuance volume and lending practices in the prime non-agency mortgage-backed security market in 2019 will be linked in several ways to the government-sponsored enterprises, according to industry analysts. Volume projections for prime non-agency MBS depend on pricing differences between non-agency execution and delivery of loans to Fannie Mae and Freddie Mac. Non-agency lenders are also expected to increasingly use tools developed by the GSEs. “We expect robust issuance from ...

December 14, 2018 - Inside MBS & ABS

Carrington Prepping Its First Non-QM MBS; Angel Oak Will be Active as Others Eye Entry Into the Market

With more lenders eyeing the non-qualified mortgage sector for entry in 2019, the deal volume for non-agency MBS could pick up significantly in the quarters ahead.

December 14, 2018 - Inside MBS & ABS

Non-Agency MBS Outstanding Nearing End of 11-Year Tunnel, Agency Market Plods Forward

The supply of single-family non-agency MBS continued to decline in the third quarter of 2018, but the sector may be nearing a turnaround point, according to a new Inside MBS & ABS analysis of outstanding mortgage securities. [Includes two data charts.]

December 7, 2018 - Inside MBS & ABS

Ruling on Non-Agency MBS Statute of Limitations in NY Prompts Reconsideration of Accrual Clauses

Lawyers for issuers of non-agency MBS are revising deal documents and considering choosing a different state for issuance after an unfavorable ruling by the New York State Court of Appeals.

December 7, 2018 - Inside MBS & ABS

Demand for New Non-Agency MBS Fading, Lack of Depth Among Investors an Issue

The spreads on newly issued non-agency MBS have widened in recent months, indicating weak-er demand from investors. The pricing trends follow sharp increases in issuance this year, with analysts suggesting there may not be enough investors to absorb new production.

November 30, 2018 - Inside Nonconforming Markets

News Briefs

Two mortgage-backed securities with non-qualified mortgages originated by Impac Mortgage Holdings are in the works, according to presale reports released last week. An affiliate of Starwood Capital Group plans to issue a $280.0 million MBS with loans solely originated by Impac, while Deephaven Mortgage plans to issue a $374.3 million deal with production from 77 lenders, led by Impac with a 14.7 percent share. Among nine mortgage-backed securities ... [Includes two briefs]

November 30, 2018 - Inside Nonconforming Markets

Many Cash-Out Refis in Investment Property MBS

An affiliate of American Mortgage Investment Partners Management plans to issue a non-agency mortgage-backed security with a high share of cash-out refinances on investment properties. Some 70.2 percent of the mortgages in the $199.5 million RCO 2018-VFS1 Trust are cash-out refis while 16.0 percent were to purchase an investment property. All of the loans were originated by Visio Financial Services, a lender that started producing mortgages in September 2015 ...

November 30, 2018 - Inside Nonconforming Markets

Multiple Factors Boosting Non-Agency MBS Prices

The strong demand for non-agency mortgage-backed securities this year looks to be tied to a number of factors, according to industry analysts. ICE Data Services, a firm that tracks non-agency MBS prices, noted that the sector has been helped by large settlements involving legacy non-agency MBS. And investors are more comfortable with the legal liability associated with non-qualified mortgages, prompting significant securitization of the loans. Issuers are also experimenting with ...

November 16, 2018 - Inside Nonconforming Markets

News Briefs

Waterfall Asset Management announced that it launched a residential mortgage conduit to focus on partnering with lenders to originate proprietary mortgage products under flow agreements. The conduit aims to purchase prime and near-prime mortgages with relatively high loan-to-value ratios. An affiliate of Caliber Home Loans is preparing to issue a $354.5 million nonprime mortgage-backed security, according to presale reports by DBRS and Fitch Ratings ... [Includes four briefs]

November 16, 2018 - Inside Nonconforming Markets

Demand for Jumbos Boosts Redwood in 3Q

Strong demand in the secondary market for jumbo mortgages lifted Redwood Trust’s mortgage banking income during the third quarter even though the volume of loans it acquired declined. Redwood had $11.24 million in non-interest income from mortgage banking activities in the third quarter, up 5.9 percent from the previous quarter. The metric tracks Redwood’s loan aggregation and sales. The real estate investment trust’s jumbo conduit acquired mortgages with an unpaid principal balance ...

November 16, 2018 - Inside Nonconforming Markets

Chase Offers Jumbo MBS with Higher LTV Ratios

The latest jumbo mortgage-backed security from JPMorgan Chase differs significantly from others deals issued by the company. The $459.3 million MBS is stocked with mortgages that have relatively high loan-to-value ratios. The average combined LTV ratio for loans in JPMorgan Mortgage Trust 2018-LTV1 is 86.2 percent and nearly every mortgage has an LTV ratio greater than 79.0 percent. The average combined LTV ratio on prime non-agency MBS issued in the third quarter of 2018 was ...

November 16, 2018 - Inside Nonconforming Markets

REITs Show Increasing Interest in Non-Agency

Demand for non-agency products, including non-qualified mortgages, is growing among real estate investment trusts. A number of REITs have ramped up their investments in the non-agency sector, with some issuing mortgage-backed securities. Annaly Capital Management, the largest mortgage REIT, had $525.0 million in residential whole loans at the end of September, up from $392.0 million a year ago. The REIT didn’t disclose the total unpaid principal balance of its whole-loan holdings ...

November 8, 2018 - Inside MBS & ABS

Investors Face a Maze of Structural Issues in Assessing Value in Non-Agency MBS

Deal structure – everything from pre-issuance loan reviews to enforcement mechanisms when things go wrong – vary significantly in the non-agency MBS market, experts noted at the Structured Finance Industry Group’s recent residential mortgage conference in New York.


With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.


Yes, but only incrementally.


We’re pondering a move into non-QM, but haven’t made up our mind.


No, definitely not. We view it has too risky.