Chase and Chimera are set to issue separate non-agency MBS backed by mortgages for investment properties, following similar deals from a handful of other firms.

An affiliate of Angelo Gordon plans to enter the non-agency MBS market with a deal backed by non-QMs. Western Asset Management priced one of the largest expanded-credit MBS and more deals are in the works.

An affiliate of American Mortgage Investment Partners Management is set to issue its second non-agency MBS backed solely by loans originated by Visio Financial Services.

Issuance of prime non-agency MBS has slowed significantly. A pending deal from Wells Fargo is only the second issuance of 2Q19, though industry participants suggest that demand from investors is increasing.

Issuance of expanded-credit products has grown significantly in the past year even though spreads on non-qualified MBS widened.

Issuance of expanded-credit mortgage-backed securities hit $5.97 billion in the first quarter of 2019, a record for the sector. It also topped prime non-agency MBS volume for the third consecutive quarter.

The sharp downturn in purchase-money loans going into Fannie and Freddie MBS was accompanied by an even bigger drop in deliveries of loans with private mortgage insurance. 

JPMorgan Chase is set to issue its first MBS stocked solely by non-qualified mortgages on primary residences. Many of the loans in the $440.54 million deal went to self-employed borrowers.