After complaints from MBS investors regarding the reporting of performance of loans in non-agency deals, the Structured Finance Association released voluntary standards that could address the issue.
The SEC’s Investor Advisory Committee wants increased regulatory disclosures in the sector. However, an SEC commissioner questioned the utility of the proposal.
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.
Industry-wide REIT MBS holdings expanded just 0.6% during the fourth quarter, a sharp slowdown from the growth rates in the prior two quarters. (Includes data chart.)
Originators of non-qualified mortgages are selling product in smaller batches and as whole loans. The reason: better execution than delivering them into MBS.
Angel Oak, a big player in the non-QM market, sees better days ahead, with securitzations leading the way. Fundings at the firm are nearing pre-pandemic levels.
The top two REIT MBS investors shifted their portfolios during the third quarter without adding significantly to them, while other REITs grew their holdings aggressively. (Includes data chart.)
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