JPMorgan Chase continued to hold the biggest portfolio of MBS/ABS in trading accounts. Bank holding companies posted a 14.9% increase in agency MBS held in trading accounts. (Includes data chart.)

For most of 2021 and the year prior, whole-loan prices in the scratch-and-dent market were at a premium. And today? Far from it, says RAMS Mortgage Capital.

Pacific Western Bank started acquiring residential mortgages in March 2021. PacWest is now done acquiring loans and looking to share credit risk on a pool with an unpaid principal balance of $2.68 billion.

It seems as though whole-loan prices for non-QMs have stabilized. Then again, the Fed just hiked interest rates.

Delinquencies on expanded-credit MBS are increasing but investors in the deals appear to be protected at the moment. A review of the sector by Fitch prompted many upgrades and no downgrades.

Investors that once focused on lower tranches of non-agency MBS are shifting up in credit, seeing just as strong returns from AAA-rated tranches with fewer risks. Investors in agency MBS are also changing strategies as interest rates rise.

When it comes to the non-QM market, PIMCO likes to keep a low profile. This summer, it appeared the firm was sitting on the sidelines as a buyer. And now? Looks like the wallet is out again.

In 2020, the SEC made a move to apply a disclosure rule that had been in effect for nearly 30 years to MBS and ABS. Industry participants have been able to delay enforcement of the rule while seeking changes to the disclosure requirements.

MBA urges FHFA to consider securitization when reviewing the Federal Home Loan Bank system; Ambac’s MBS lawsuit against Countrywide goes to trial 12 years later; MISMO seeks comments on template for BWIC activity.

Finally, an improvement on non-QM whole-loan bids. But it’s all about the note rate if you want to earn any money on the deal.