status: draft
Key participants
The non-agency RMBS market has distinct participants across origination, aggregation, warehouse lending, securitization, servicing, and investment. Understanding who does what helps you navigate capital formation and execution.
Originators and aggregators
Major non-QM / DSCR originators
| Company | Primary Products | Annual Volume | Notes |
|---|
| Angel Oak | Non-QM (bank statement, DSCR) | $8-12B | Largest non-QM issuer |
| Verus | Non-QM, RPL | $6-10B | Originates and aggregates |
| Deephaven | Non-QM (bank statement, foreign national) | $4-6B | Focus on self-employed |
| NewRez/PIMCO | Non-QM, prime jumbo, RPL | $10-15B | Backed by Rithm/PIMCO |
| Redwood | Prime jumbo, non-QM | $6-10B | Pioneered post-crisis non-agency |
| Caliber | Non-QM, DSCR | $3-5B | Broad retail platform |
| loanDepot | Non-QM, prime jumbo | $4-6B | Large retail originator |
| A&D Mortgage | DSCR, foreign national | $2-4B | Miami-based, international focus |
| Acra Lending | Non-QM, DSCR | $2-3B | Correspondent-focused |
| First Guaranty Mortgage | Non-QM | $1-2B | Regional presence |
Prime jumbo specialists
| Company | Focus | Volume |
|---|
| Redwood Trust | Prime jumbo, non-QM | $3-6B |
| Pennymac | Correspondent aggregation | $10B+ (across products) |
| United Wholesale Mortgage | Wholesale channel | Large prime component |
| Rocket Mortgage | Direct to consumer | Significant jumbo share |
Aggregators (buy from correspondents)
| Company | Products | Model |
|---|
| Pennymac | All residential | Correspondent aggregator |
| Two Harbors | Prime, non-QM | REIT buyer |
| Rithm Capital (NewRez) | All products | Vertically integrated |
| Invictus Capital Partners | Non-QM, DSCR | Investment-focused |
RPL / NPL specialists
| Company | Focus | Notes |
|---|
| Bayview Asset Management | RPL, NPL | Long history, servicing platform |
| Carrington Mortgage | RPL, NPL | Originate, acquire, service |
| NewRez | RPL | Aggregates for securitization |
| PHH / Ocwen | NPL servicing | Special servicing focus |
status: draft
Warehouse providers
Major banks
| Bank | Typical Products | Advance Rates |
|---|
| JPMorgan Chase | Prime jumbo, non-QM, DSCR | 85-95% |
| Wells Fargo | Prime jumbo, non-QM | 85-95% |
| Citibank | Prime jumbo, non-QM, DSCR | 85-93% |
| Bank of America | Prime jumbo, non-QM | 85-92% |
| Barclays | Non-QM, DSCR, RPL | 75-90% |
Non-bank / specialty providers
| Provider | Focus | Notes |
|---|
| Nomura | Non-QM, DSCR | Active in non-agency |
| Mizuho | Non-QM | Growing presence |
| Deutsche Bank | Non-QM, RPL | European bank with US exposure |
| Customers Bank | Non-QM, DSCR | Regional bank, active |
| Western Alliance | DSCR, non-QM | Specialty finance focus |
| Texas Capital Bank | Non-QM | Regional player |
| Flagstar | All residential | Acquired by New York Community |
Warehouse pricing framework
| Product | Typical Advance | Typical Spread |
|---|
| Prime Jumbo | 93-97% | SOFR + 125-175 bps |
| Non-QM (prime) | 85-92% | SOFR + 175-250 bps |
| Non-QM (expanded) | 78-85% | SOFR + 225-325 bps |
| DSCR | 82-90% | SOFR + 175-275 bps |
| RPL | 72-82% | SOFR + 250-400 bps |
| NPL | 50-70% | SOFR + 400-600 bps |
Illustrative pricing. See pricing disclaimer.
status: draft
Term ABS underwriters / bookrunners
Lead arrangers
| Bank | Non-Agency RMBS Role | Market Share |
|---|
| JPMorgan Securities | Lead bookrunner | Top 3 |
| Wells Fargo Securities | Lead bookrunner | Top 3 |
| Morgan Stanley | Lead bookrunner | Top 3 |
| Barclays | Active in non-QM | Top 5 |
| Nomura Securities | Active in non-QM | Top 5 |
| Credit Suisse (legacy) | Winding down | Legacy positions |
| RBC Capital Markets | Growing presence | Active |
| Citigroup | Selective | Larger deals |
What underwriters do
| Function | Description |
|---|
| Structuring | Tranching, enhancement levels, trigger design |
| Pricing | Spread determination, market sounding |
| Distribution | Investor outreach, book building |
| Warehousing | May provide bridge funding pre-deal |
| Secondary market | Market making post-issuance |
Underwriter economics
| Fee Type | Range |
|---|
| Underwriting fee | 0.5-1.0% of deal size |
| Selling concession | 0.25-0.50% |
| Management fee | 0.10-0.25% |
| Total compensation | 0.85-1.75% |
Fees are lower for repeat issuers and larger deals.
status: draft
Active investors
Insurance companies (senior tranches)
| Company | Focus | Typical Tranches |
|---|
| Metropolitan Life | Prime jumbo, non-QM | AAA, AA |
| Prudential | Prime jumbo, non-QM | AAA, AA |
| New York Life | Prime jumbo | AAA |
| Principal | Non-QM | AAA, AA |
| Athene | Non-QM, RPL | AA, A |
| Corebridge (AIG) | Non-QM | AAA, AA |
Why insurance buys senior non-agency:
- Yield premium over corporate bonds
- Real estate collateral
- Favorable RBC treatment (NAIC 1 for highly rated)
- Diversification from corporate credit
Credit funds (mezzanine and residual)
| Fund | Focus | Typical Tranches |
|---|
| PIMCO | All non-agency RMBS | A through residual |
| Blackstone | Non-QM, RPL | BBB through residual |
| Apollo | RPL, NPL | BB through residual |
| Oaktree | NPL, distressed | B through residual |
| Cerberus | NPL, RPL | Mezzanine, residual |
| Angelo Gordon | NPL, RPL | Mezzanine, residual |
| Fortress | All products | Full capital stack |
| Ares | Non-QM | Mezzanine |
Mortgage REITs
| REIT | Focus | Strategy |
|---|
| Two Harbors | Prime, non-QM | Retain residuals, buy bonds |
| AGNC | Prime (limited non-QM) | Agency-focused with non-agency allocation |
| Annaly | Prime, non-QM | Large mortgage REIT |
| MFA Financial | Non-QM, credit | Credit-focused |
| Invesco Mortgage | Non-QM | Active non-agency investor |
Banks and depositories
| Bank Type | Role |
|---|
| Regional banks | Occasional AAA buyers for yield |
| Credit unions | Limited participation |
| Foreign banks | Yield enhancement, diversification |
Banks face regulatory capital constraints that limit non-agency RMBS participation relative to other investor types.
status: draft
Third-party due diligence firms
| Firm | Specialty | Notes |
|---|
| AMC / Diligence (CoreLogic) | Full-scope TPR, compliance | Market leader |
| Clayton (Covius) | Legacy leader, all product types | Broad coverage |
| Opus | Growing non-QM presence | Technology-forward |
| Canopy | Technology-enabled TPR | Faster turnaround |
| Inglet Blair | Compliance focused | Regulatory expertise |
| Recovco | Document retrieval | File completion |
status: draft
Legal counsel
Issuer / originator counsel
| Firm | Specialty |
|---|
| Mayer Brown | Structured finance, warehouse |
| Sidley Austin | Securitization, fund formation |
| Dechert | Investment management, structured products |
| Orrick | Capital markets, mortgage finance |
| Katten | Warehouse, securitization |
Underwriter counsel
| Firm | Role |
|---|
| Hunton Andrews Kurth | Underwriter representation |
| Cadwalader | Structured finance |
| Kramer Levin | Securities, capital markets |
| Skadden | Major transactions |
What counsel does
| Function | Issuer Counsel | Underwriter Counsel |
|---|
| Documentation | Draft PSA, offering docs | Review, negotiate |
| Disclosure | Prepare risk factors | Due diligence |
| Structure | Tax, regulatory advice | Confirm structure |
| Negotiation | Rep and warranty | Investor protection |
status: draft
Rating agencies
| Agency | Non-Agency RMBS Market Share |
|---|
| S&P Global | ~35-40% |
| Moody’s | ~30-35% |
| Fitch | ~20-25% |
| KBRA | ~15-20% (growing) |
| DBRS | ~10-15% (growing) |
Why two ratings matter: Most institutional investors require two ratings from different agencies. S&P + Moody’s is traditional; KBRA and DBRS have grown share by being more accessible to newer issuers.
Rating agency engagement
| Phase | Timeline | Activities |
|---|
| Preliminary | 6-8 weeks pre-deal | Data submission, originator review |
| Collateral review | 4-6 weeks pre-deal | Loan tape analysis, enhancement calculation |
| Pre-sale | 2-4 weeks pre-deal | Pre-sale report published |
| Final | Deal closing | Final ratings, surveillance begins |
status: draft
Servicers
Primary servicers
| Servicer | Volume | Notes |
|---|
| Cenlar | Large | Sub-servicer for many originators |
| Specialized Loan Servicing | Large | Non-QM focus |
| LoanCare | Large | Broad platform |
| NewRez | Large | Vertically integrated |
| PHH | Medium | Special servicing capabilities |
Special servicers (for RPL/NPL)
| Servicer | Focus |
|---|
| Carrington | RPL, NPL, modification expertise |
| PHH / Ocwen | NPL, loss mitigation |
| Specialized Loan Servicing | RPL |
| Bayview Loan Servicing | RPL, NPL |
See servicer selection for evaluation criteria and servicing economics.
status: draft