Lenders cut back on jumbo originations in the third quarter, and they kept most of what they produced. The result: a 73% nosedive in prime RMBS issuance from the second quarter. (Includes three data charts.)

Two of the deals are backed by investor debt service coverage ratio mortgages. There is also a 100% HELOC transaction in the works.

Annaly was the top issuer of non-agency MBS in the third quarter. The REIT had to retain more of its issuance than usual due to weak investor demand.

Redwood acquisitions of jumbo mortgages declined by more than 70% on a sequential basis in the third quarter. Officials at the REIT suggested that Redwood will continue to limit loan acquisitions until market dynamics improve.

Only one deal hit the market in the past two weeks and the issuance pipeline isn’t looking particularly strong.

Bayview Asset Management and Verus Mortgage Capital separately started marketing non-agency MBS in the days after Hurricane Ian made landfall. Rating services that assessed the deals differed in their focus on potential damage from the hurricane.

An affiliate of Bayview Asset Management is set to issue its first jumbo MBS since December. Loans in the deal have seasoned for an average of 4.5 months and were sourced from a number of lenders.

After aggregating mortgages from some of the largest players in the non-agency market, Pacific Western Bank is looking to sell risk on the loans that have a total unpaid principal balance of $2.68 billion.

Spreads had steadily widened in the expanded-credit sector between February and July. But as spreads declined in August, demand for expanded-credit MBS appears to have improved.

MISMO is getting close to releasing revised standards for data collection in the non-agency MBS market. The effort could prompt efficiencies for lenders, due diligence firms and rating services.