Goldman Sachs Sells $297M in Mortgage-Backed Securities
The securities package covers loans for investment properties and borrowers with non-traditional income verification.
Updated on Oct. 21, 2026 in Residential
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Goldman Sachs Mortgage is moving forward with a $297.2 million sale of residential mortgage-backed securities, designated as GSMBS 2026-NQM6. The pool consists of various loan types, including hundreds of cash-out refinances and properties utilized for investment purposes.
Why it matters
This security pool reflects how major lenders are packaging debt from borrowers with non-standard income verification or investment property goals. Tracking these bundles offers insight into the evolving criteria and risk profiles being used in the current mortgage lending landscape.
The pool includes 377 cash-out refinances, which average $140,172 each, while 45.6% of all borrowers rely on alternative-income verification. These loans carry a weighted average FICO score of 740 and a cumulative loan-to-value ratio of 70.23%.
The players
Goldman Sachs Mortgage
A major financial institution that originates and packages residential mortgage loans into investment-grade securities.
S&P Global Ratings
A credit rating agency that evaluates financial instruments and assesses risk for potential investors.
SitusAMS, Selene Diligence and Clarifi
Third-party due diligence firms that verify loan documentation and underwriting standards.
The details
The transaction is structured to pay noteholders through a mix of pro rata and sequential distributions. To account for risk, S&P Global Ratings applied a 2.00x foreclosure frequency adjustment factor to the pool. Certain certificates within the deal are set to transition to step-up interest rates as the maturation timeline progresses.
Timeline
November 2030: Step-up rates begin for designated certificates.
Dec. 27, 2066: Final maturity and payment date for notes.
The Home Front
This transaction underscores the continued growth of the non-qualified mortgage (non-QM) sector, where lenders bundle loans that fall outside standard government-backed criteria. These securities represent a shift toward specialized financing for investment properties and self-employed borrowers.
If you are currently considering a cash-out refinance or have an investment property, be aware that underwriting standards for non-traditional loans remain highly scrutinized by rating agencies. Review your credit profile and income documentation, as these factors remain the primary drivers for mortgage approval and security packaging.
The takeaway
Understanding how lenders bundle non-traditional loans can offer a clearer picture of the financing landscape for investment and refinance products. Keep an eye on your credit score and alternative income records to ensure you remain competitive when applying for non-standard mortgage products.
Further reading
For more on the current lending climate, see our Residential section.
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Do you trust that residential mortgage-backed securities are safe for the broader financial system?
