Affiliates of New Residential Investment and CarVal Investors packaged re-performing mortgages with a total unpaid principal balance of more than $1 billion for two separate MBS that will be issued this month. There’s plenty of supply of seasoned mortgages in the secondary market, but higher interest rates could weaken demand, according to industry analysts. An affiliate of CarVal Investors priced a $395.3 million non-agency MBS late last week with more variety in collateral than the typical MBS backed by seasoned mortgages. In addition to re-performing mortgages, Mill City Mortgage Loan Trust 2017-1 included some home-equity lines of credit and newly originated mortgages. Vintage HELOCs accounted...