Morningstar plans to create the first ratings criteria specifically for securitization of loans for home improvement projects.

The securitization will retire a similar transaction that was issued a year ago. Rating services raised some concerns about changes in streaming and risks from songs generated with AI.

While impairments initially rise following a hurricane, borrowers with loans in ABS typically get back on track, according to dv01.

Deals rated by Moody’s successfully navigated the end of LIBOR reporting; vintage MBS wrapped by MBIA downgraded; GSEs, Ginnie increase MBS disclosures; ICE offers emissions estimates for MBS; new TBA trading app from South Street Securities.

Issuance of residential MBS was up 11.9% in the third quarter, thanks to a decline in interest rates that sparked increased refinance activity and bolstered purchase-mortgage lending. (Includes three data tables.)

Delinquencies on securitized non-QMs are increasing. But market participants believe there is so much credit enhancement on the deals, plus home equity, that it’s a non-issue for now.

Delinquencies are projected to increase across asset classes, though some sectors will be hit harder than others.

The Federal Reserve should allow banks to increase issuance of credit-linked notes, according to House GOP lawmakers.

Fed researchers say most mortgages will remain out of the money for the foreseeable future, which means redemptions of MBS in the Fed’s portfolio may remain below the cap of $35 billion per month.

A new white paper says MBS investors can learn more about projected mortgage prepayment activity if MBS modeling is expanded to incorporate trended credit data.