The re-proposed capital requirements for the GSEs could prompt a shift in activity toward the non-agency market. The devil is in the details.

CFPB issues proposed rule for LIBOR transition; non-agency forbearance rate declines; Chimera turns to alternative financing; Invictus launches commercial lender; SFA shifts date for annual conference.

After issuance ground to a halt in March, five non-QM MBS deals came to the market in May and more are on the way. Transactions have been stocked with slightly seasoned mortgages.

Among the lenders currently offering non-QMs, underwriting standards are tighter and interest rates on the loans are higher than earlier in the year. Industry participants are optimistic that the sector will rebound, eventually.

For the first time in years, the amount of jumbo mortgage servicing outstanding declined on a quarterly basis. Looking forward, forbearance requests are a key issue. (Includes data chart.)

A $335 million deal from Goldman Sachs is the first prime non-agency MBS in the market since mid-March. The transaction includes mortgages originated in the past few months.

A coalition of industry trade groups asked the SEC to revise standards for publicly registered non-agency MBS. They suggested aligning standards with practices for private placements.

Beginning in March, the GSEs loosened certain appraisal standards due to complications from the coronavirus. A number of non-agency lenders are following the GSEs’ lead.

Redwood reduces both debt and the share of its debt subject to potential margin calls; Sprout launches new jumbo product.

The jumbo market was humming along at the start of the year until volatility from the coronavirus disrupted lending in March. Originations of jumbos declined sharply and the sector lost market share. (Includes data chart.)