Citigroup Global Markets Realty is now in the non-qualified mortgage space after issuing its first non-mortgage backed security, according to a report.
"The company issued its first deal at $362.58 million worth of loans originated by Impac Mortgage Holdings," according to HousingWire.
"The group is acquiring non-QMs from lenders to re-sell in the secondary market, according to a report from DBRS, a credit reporting agency."
The report also states that the DBRS believes the deal is stronger than other non-QM MBS because of the lack of sunset provisions. The DBRS also predicted a rise in non-QM mortgage loans in 2018, according to the report.
"The company explained increasing home prices and the shortage of housing inventory, alongside rising interest rates, will result in more lenders expanding their loan offerings to include products outside the QM space, according to the DBRS’ U.S. Residential Mortgage Review and 2018 Outlook," according to HousingWire.
To learn more about Citigroup's new entry into the non-QM MBS world, click on the image above.