Non-agency MBS Weekly: Non-QM, FICO 10T, and June Remits: Low Speeds, High FICO, Predictable Models

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Non-agency MBS Weekly: Non-QM, FICO 10T, and June Remits: Low Speeds, High FICO, Predictable Models

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Non-agency MBS Weekly

Non-QM, FICO 10T, and June Remits: Low

Speeds, High FICO, Predictable Models

Market Overview 10 July 2026

Issuance for the week was around $1bn, YTD at $135bn. Spreads tightened slightly over Securitized Products Strategy

the week, with Non-QM AAAs at 120bps, HELOC/CES at 120bps, Jumbo 2.0 PT at United States

130bps. 6.5 cap Jumbo 2.0 floaters are currently at 135bps, and 6.0 cap 165bps which

offer an attractive rel-val compared to fixed RMBS AAA and CLO AAAs at 120bps. PratikCLO/MBSK. GuptaStrategist

BofAS

As of June, Non-QM outstanding has exceeded $202bn. This is up from $172bn at the +1 646 855 9146

pratik.gupta@bofa.com

start of 2026. Agency Investor securitization has also exceeded $50bn.

Chris Flanagan

Non-QM Prepays Ramping Faster vs Agency FI/MBS/CLOBofAS Strategist

+1 646 855 6119

2024 and 2025 NQM vintages are seeing an uptick in prepayment speeds in recent christopher.flanagan@bofa.com

months when compared to Agency Speeds. We are also seeing a greater divergence in Jeana Curro

prepayment speeds by doc type with newer vintages, and faster speeds in Full doc. MBS Strategist

jeana.curro@bofa.com

ROAD to Housing still Plenty Wide Andy Fan

The 21st Century ROAD to Housing Act will go into effect tomorrow unless vetoed by the CLO/MBS Strategist

President. It is not as restrictive as many feared it would be for SFR operators, and still +1 646 855 9145

allows for a multitude of ways in which institutions can acquire and operate rental andy.fan3@bofa.com

properties, as well as leaving the build-to-rent pipeline open. The previous clause Akash Bhairav Gupta MBS/CLO Strategist