Big players remain largely absent from the re-emerging private-label residential mortgage-backed securities market, Royal Bank of Scotland managing director Trez Moore told attendees at an industry meeting Monday.

Instead, nonbank originators have a growing role in the space, Peter Sack, a managing director of Credit Suisse, said during the PL RMBS panel at the Mortgage Bankers Association's National Secondary Market Conference.

He said during a question-and-answer session that the market has an oversupply of California loans and has been paying a premium for jumbo originated in other states.

California, he said, can't be avoided but there is more of this product than can be funded through private-label securitization.

When asked how he expects upcoming January changes in consumer protection law to affect the market, he said there is going to be more focus on debt-to-income calculations as new rules define them, something that is not entirely clear yet. This will be watched closely in tandem with the representations and warranties framework in transactions, he said.

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