Noting strong demand for non-agency MBS, issuers are getting creative with the types of loans they package into deals. JPMorgan, Credit Suisse, Angelo Gordon and Goldman Sachs are all entering new sectors.
PIMCO is set to issue a non-agency MBS with loans sourced from non-QM deals issued by Lone Star Funds. The older MBS were subject to clean-up calls, allowing PIMCO to re-package the loans.
It may seem counterintuitive, but MBS backed by reperforming loans, and thus not eligible to be traded in the to-be-announced market, are the ideal assets in collateralized mortgage obligation deals. According to a report from Stifel’s fixed income strategy division, the reason is simple — most modified loans are unlikely to be refinanced as they have “a unique and desirable prepayment profile.” Borrowers with modified loans have already had their rates dramatically reduced. They're unlikely to ...
New York-based real estate investment trust MFA Financial is working on two separate non-QM- related MBS deals that could come to market sometime this spring, according to officials familiar with the transactions.
The overall mortgage securitization rate fell slightly in 2018, with 70.0% of home loans originated in the primary market ending up in MBS pools, according to an Inside MBS & ABS analysis. [Includes one data chart.]
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