A huge downturn in issuance of agency multifamily MBS was the key factor in a 23% decline in commercial mortgage securitization during the first quarter of 2019. Non-agency CMBS production saw a gentler 6% downturn.
Retained mortgage portfolios at Fannie Mae and Freddie Mac were relatively unchanged in the first quarter as increases in MBS holdings offset declines in whole loans. The portfolios still generate earnings, but guarantee business is the biggest source of income.
PIMCO could raise $1 billion from an IPO for a newly-formed REIT, PIMCO Mortgage Income Trust, which will initially invest in agency MBS, followed by mortgage servicing rights.
The agency is considering possible changes to the current criteria for delivering mortgages into multi-issuer mortgage-backed securities pools, including restricting VA cash-out refinance loans.
So, you thought it was safe to re-enter the Ginnie Mae market? Maybe, maybe not. VA loan churning could be an issue again and federal investigators are asking questions about underwriting practices and delinquencies. Subpoenas have been issued.
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Postal Realty Trust is set to tap the capital market with a $100 million initial public offering in a bid to become the only publicly traded REIT dedicated to owning and managing USPS properties.
S&P's proposal to loosen rating standards for CLOs was criticized by a former chief credit officer of the rating service. Annual issuance of CLOs increased by 9% in 2018 to $129 billion, with analysts warning of performance issues.