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Home equity, non-QM deals dominate summer RMBS
['Nazeefa Ahmed Is A Reporting Associate For National Mortgage News Through The Dow Jones News Fund. Awards', 'Nazeefa Was Formerly A South Asian...', 'Originations Editor', 'Staff Writer', 'Capital Markets Editor', 'Technology Reporter']
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Home equity extraction, through lines of credit and second liens, persists, while non-qualified mortgages deals lengthen what's been a record run.
Bank of America's securities division projects non-QM originations of $175 billion in 2026 , with issuance climbing from roughly $80 billion toward $100 billion.
This $235 million securitization was more than double the size of a March deal.
The rest consists of reperforming, Individual Taxpayer Identification Number and seasoned non-QM loans.
Recent deals not only show interest in securitizing non QM and home equity loans separately but some have mixed the collateral types.