Loan prices for second homes and investment properties are getting whipsawed, giving bottom feeders the upper hand. Credit the FHFA.

A 30-day average of SOFR would make a good replacement for LIBOR when pricing new MBS and ABS, according to a recommendation from a committee of industry participants convened by the Fed.

Top life insurance companies increased their ABS holdings substantially in 2020 and commercial MBS investment was up as well. But residential MBS portfolios declined. (Includes data chart.)

The SEC’s Investor Advisory Committee wants increased regulatory disclosures in the sector. However, an SEC commissioner questioned the utility of the proposal.

FoAM sees a growing potential in HECM securitizations and is expanding its menu in the space. Meanwhile, its SPAC/IPO has been green-lighted for early April.

Prepayments helped pay down senior bonds, making the remaining subordinated tranches the larger share of an expanded-credit deal’s balance. Result: A larger cushion against potential losses, DBRS said.

Prime non-agency MBS with newly originated mortgages continue to hit the market while expanded-credit issuers are struggling to source loans.

The Federal Reserve wants to continue buying agency MBS at its current pace, which should keep rates and spreads down for the foreseeable future.

The Structured Finance Association is working with members of Congress on a potential bill to help facilitate the transition away from the scandal-scarred LIBOR.

The CFPB proposed extending the GSE “patch” through September 2022 while new leadership at the regulator considers revisions to the general QM standards.