The biggest decline in CLO issuance came in refinance and restructuring transactions, where volume fell 26% from the second to the third quarter. Refi CLO activity still accounted for 47% of new issuance. (Includes two data charts.)
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After the FHFA revealed its intent to reduce GSE capital requirements for CRT exposure, Fannie announced plans to get back in the market. (Includes data chart.)
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The leaders of the mortgage REIT world posted third-quarter results this week. Bottom line: Strong earnings and common shares that continue to pay a nice dividend.
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Moody’s is considering increasing credit enhancement requirements and capping ratings for mortgage warehouse lending securitizations that allow for “wet” loans.
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Spreads on jumbo MBS widened in recent months as the supply of prime non-agency MBS surged. Redwood Trust opted for more whole-loan sales during the third quarter while JPMorgan Chase remained an active MBS issuer.
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By raising the income limit for RefiNow and RefiPossible, FHFA has upped the pool of borrowers eligible for a refi by nearly a third. What that does to prepayment speeds depends on the uptake of the programs.
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Federally insured depositories often source their CRA loans via nonbanks and an investment banking trading desk. But what if nonbanks must suddenly adhere to CRA standards of their own?
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