Legal Seminar, Chicago, IL

SECURITIZATION VOLUME AND COMPOSITION OVERVIEW

Agency/Non-Agency Share of Residential MBS Issuance

Agency share

Non-agency share

The non-agency share of mortgage securitizations has increased gradually over the post- crisis years, from 1.8 percent in 2016 to 4.4 percent in 2018. It was even higher, 6.17 percent, as of May 2019. Non-agency securitization volume totaled $16.83 billion for Q1 2019, slightly higher than the $16.79 billion in Q1 2018, with a change in the mix. Alt-A and subprime securitizations continue to grow, with subprime securitizations more than tripling and Alt-A securitizations more than doubling since this same period last year. Non-agency securitizations continue to be tiny compared to pre-crisis levels.

100%

93.83%

90%

80%

70%

60%

50%

40%

30%

20%

6.17%

10%

0%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Sources : Inside Mortgage Finance and Urban Institute. Note : Based on data fromMay 2019.

Monthly Non-Agency Securitization

Non-Agency MBS Issuance

($ billions)

Re-REMICs and other Scratch and dent Alt A Subprime Prime

($ billions)

$14

$1,400

$12

$1,200

$10

$1,000

$8

$800

4.91

$1.60 $5.12 $3.12 $3.13 $3.85

$6

$600

$4

$400

$2

$200 $

$0

$-

Feb-15

Feb-16

Feb-17

Feb-18

Feb-19

Aug-14

Aug-15

Aug-16

Aug-17

Aug-18

Nov-14

Nov-15

Nov-16

Nov-17

Nov-18

May-14

May-15

May-16

May-17

May-18

May-19

Sources: Inside Mortgage Finance and Urban Institute.

12

Sources : Inside Mortgage Finance and Urban Institute.