Presidential candidate Elizabeth Warren has flagged concerns about the issuer-pays model used by credit rating agencies for securitized products. She said the SEC hasn’t done enough to address the conflicts of interest tied to the model.
Some investors prefer buying non-agency mortgages via whole loan transactions rather than stocked in MBS. Whole loans offer better yields and more loan information.
REITs, which have become key investors in MBS and MSRs, may get another crack at FHLB membership if the Trump administration gets its way. The golden chalice: discount advances available via the borrowing window.