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.
In a positive sign for the non-agency MBS market, JPMorgan Chase is set to issue a $440.54 million MBS stocked with non-qualified mortgages for primary residences. It will be the the first big bank to do so.
LendingHome recently issued a $219 million asset-backed security with fix-and-flip loans originated by the firm; Reliant Bancorp, Brentwood, TN, launched a correspondent purchase program for non-qualified mortgages in March; Angel Oak Mortgage Solutions expanded its office space in Dallas and Atlanta.
Verus Mortgage Capital and Chimera Investment Corp. are both set to issue non-agency mortgage-backed securities backed solely by loans for investment properties. The types of mortgages in the two deals differ. Loans in the Chimera MBS were eligible for delivery to the government-sponsored enterprises, but that was not the case with the Verus deal.
Redwood Trust is developing an outlet for mortgages that differ somewhat from traditional whole-loan sales. Officials at the real estate in-vestment trust have been working on the effort for months but haven’t formalized anything yet.
Goldman Sachs is set to issue a non-agency mortgage-backed security stacked with jumbo loans eligible for sale to the government-sponsored enterprises. The deal will mark the bank’s return to the prime non-agency MBS market. The deal size is $230.60 million, according to presale reports published last week by DBRS and Moody’s Investors Service.
Lenders originating fix-and-flip loans and mortgages for single-family investment properties are seeing strong demand from investors in the secondary market.
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