First Republic Bank has set its sights on cleaning up its balance sheet and originating loans for sale to the secondary market, which may be easier said than done.
Expanded-credit MBS issuance increased by more than 75% in the first quarter of 2023. Invictus Capital Partners was the top issuer in the early months. (Includes three data charts.)
While real estate lending might not feel the brunt of a possible credit squeeze, products like jumbo mortgages could still face challenges. There are signs that banks have reduced their appetite for the loans.
Conforming jumbos, cash-out refinances and mortgages for investment properties and second homes are becoming less prevalent in deliveries to the government-sponsored enterprises. (Includes data chart.)