Non-agency mortgage specialist surpasses giant with $5.75 billion in securitizations last year
Verus Mortgage Capital, a correspondent investor specializing in residential non-qualified mortgage (non-QM) and investor rental programs, was the top issuer of non-agency mortgage-backed securities in 2023.
According to a ranking by Inside Nonconforming Markets, VMC’s parent company, Invictus Capital Partners, issued $5.75 billion in non-agency securities last year – outpacing the $3.95 billion issued by jumbo loan investor JPMorgan Chase.
The non-QM sector represented roughly 40% of total non-agency MBS issuance in 2023, establishing itself as the largest subsector of the private-label market.
“Verus remains committed to innovation and excellence in the non-QM and non-agency space,” VMC president Dane Smith said in a press release. “Now is the ideal time for originators to consider the non-QM sector, partnering with Verus, the recognized market leader.”
Non-QM lending represented roughly 40% of total non-agency MBS issuance in 2023, establishing itself as the largest subsector of the market.
Through its correspondent lending platform, Verus financed 11 non-QM deals totaling over $5.71 billion last year. The firm also saw a 45% increase in the number of unique investors participating in each securitization.
Since its 2015 founding, Verus has now financed approximately $28 billion through 54 rated non-agency securitizations.
“Non-QM continues to be a practical way for lenders to meet the ever-changing financial needs of their borrowers,” Smith added.
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While still a fraction of the overall mortgage market, the non-QM sector provides increased lending options for self-employed borrowers, investors, and those with other non-traditional financial profiles.
Verus operates as a correspondent investor, purchasing non-QM and investor rental loans originated by lenders nationwide to pool into securitizations with Invictus Capital Partners.
As affordability pressures and credit tightening persist, issuers like Verus aim to capitalize on the demand for expanded mortgage credit accessibility through private-label securitization channels.
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