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.
Issuance of mortgage-backed securities with non-qualified loans continues at a brisk pace, with a new deal from New Residential Investment in the pipeline.
An affiliate of Oaktree Capital Management is set to issue its first mortgage-backed security with non-qualified loans. The $268.16 million issuance includes loans from two prominent lenders who haven’t been large players in the non-QM MBS market recently.
Moody’s Investors Service has flagged risks related to non-agency players using the automated underwriting tools developed by the government-sponsored enterprises to produce loans underlying private-label mortgage-backed securities.
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