Feedback from residential servicers indicates that the number of new loan modifications on mortgages in non-agency MBS this year will be near levels seen last year.
Guaranty fees need to be raised by roughly 10 basis points in order for the pricing between agency and non-agency deals to be comparable, according to a new report.
Besides entering the servicing arena, Two Harbors Investment Corp. is building an originator network to issue non-agency jumbo mortgage-backed securities on its own.