The only gain was the niche market in securitized second-lien mortgages.

Prices on non-agency MBS took such a hit in 2022 that the market is now gaining popularity with investors, even with the threat of a recession. Still, new issuance in 2023 is expected to come in lower on an annual basis.

The SEC’s rulemaking agenda includes climate-related disclosures, cybersecurity disclosures and other rules aimed at the MBS and ABS markets.

Increasingly, nonbanks are using their “owned” MSRs as collateral for repo lines. And why not? Servicing values continue to be strong, and prepayments are almost non-existent.

Spreads tightened this week for a new CRT transaction from Fannie and new non-agency MBS; prepayment rates on agency MBS exceptionally low; lessons from Silvergate Bank’s crypto activity.

Loans in the new jumbo MBS have seasoned for an average of six months...

Among nonbanks, the larger shops saw their slice of the pie grow by two percentage points.

Notable: Roughly 9.9% of all purchase loans were in the under-60% LTV range, a 289-bps increase since the first quarter.

Another way to view it: 2022 was the seventh-highest annual output ever...

Fees associated with MBS trades and other services provided by the Fixed Income Clearing Corp. increased Jan. 1. The FICC said the fee hike was necessary due to lower revenues and higher expenses.