The increase in non-agency deals was driven by prime jumbos with $14.4 billion, up 50.3% quarter over quarter. The issuance of loans backed by expanded-credit mortgages followed with $10.4 billion – more than double the volume in the first quarter.

According to Inside Nonconforming Markets, loans eligible for sale to Fannie Mae and Freddie Mac also boosted lending activity in the non-agency sector.