Vista Point Mortgage received an assessment by S&P, which suggests the firm is aggregating non-QMs with plans to contribute to non-agency MBS. The firm was founded by the former president of Impac Mortgage.
Redwood is prepping a large prime non-agency MBS while Quicken issued its second deal. Seer Capital has an expanded-credit product in the works and Velocity a small-balance commercial loan deal.
Presale reports for five prime non-agency MBS have been published in the past two weeks, including two deals from JPMorgan Chase. Many of the loans were funded by nonbanks and are eligible for sale to the GSEs.
Issuance of prime non-agency MBS will likely increase this year, according to projections by industry analysts. The big wildcard is how FHFA’s efforts to reduce the GSEs’ footprint will impact the non-agency market.
The lender plans to raise around $100 million through an initial public offering of shares. Velocity funded about $1.0 billion of originations in 2019, focused on residential investment and small commercial properties.
After a lull in December, issuers are bringing non-agency MBS to the market. Redwood Trust is planning a deal with seasoned mortgages while New Residential has an expanded-credit MBS.
While 12 firms are deemed as acceptable by Fitch Ratings to review loans in MBS rated by the agency, two firms, SitusAMC and Clayton, handled nearly all reviews in recent years.
A non-agency MBS from Provident suggests better execution for GSE-eligible mortgages in the non-agency market. But analysts don’t expect a flood of non-agency MBS with GSE-eligible loans.
RSS