Finance

Higher sales commissions helped to drive production costs to their second-highest level since the Mortgage Bankers Association started its survey in 2008.

The collateral pools consists of 578 loans, and the trust uses a senior-subordinate, shifting-interest structure that helps maintain a longer subordination period.

Any reinvestment assets chosen for the trust must be a healthcare property, and they must be intended for refinance with the proceeds of an agency mortgage loan.

Federal Reserve officials at their last meeting stressed the need for flexibility on how quickly they will scale back their bond-buying program as well as the timing of interest-rate increases, before data showed inflation accelerating.

Borrowers expect the Federal Reserve to raise interest rates next year to contain soaring prices and are locking in favorable terms now, bankers say.

The deal also provides a sequential principal distribution to all of the certificates at all times, unlike recent non-prime securitizations.

Due in part to pandemic-related forbearance, GSE portfolio loans with year-plus delinquencies hit the highest point seen since the Federal Housing Finance Agency started tracking them in 2015.

However, capacity issues, the suspension of the government-sponsored enterprise purchase caps and higher conforming limits all could affect activity, KBRA said.

Once the news of the delayed sale was announced, the mortgage wholesaler opened trading on Nov. 17 at $1.17 per share higher than its previous close.

The sponsors got the portfolio through multiple acquisitions from May through October.