MBS

The Department of Housing and Urban Development affiliate is making it easier to repackage securities backed exclusively by these mortgages.

A new label and disclosures for certain mortgage securities may create more of an impetus for lenders to extend credit to underserved populations.

New mortgage bonds now offer yields that are about 1.66 percentage point higher than U.S. Treasuries, according to data compiled by Bloomberg. That's the most relative to corporate bonds in 17 years. 

The REIT issued its second securitization of the year in June, while also purchasing or locking $50 million in newly originated loans.

Federal Deposit Insurance Corp. sales from the portfolios of failed Silicon Valley Bank and Signature could be complete by September, according to a report published Tuesday by FHN Financial.

A vast majority of the pool, 86.35%, consists of primary homes. Investment properties and secondary homes, meanwhile, account for 11.29% and 2.36% of the collateral.

The properties have a purchase price of $684.8 million, and an issuer cost basis of $744.4 million, a debt yield of 7.0%, and a debt service coverage ratio of 1.44x.

Notes will be repaid through a modified sequential structure, which calls for the A-1 and M-1 through M-3 classes to receive principal on a pro-rata basis.

The marketplace has a large appetite to acquire risk-adjusted rental product. Investors see tailwinds leading to a revitalization of SFR capital markets by yearend.

New loan acquisitions fell to their lowest level since 2020, but companies also grew shares of residential securities noticeably over the past three years, S&P Global Market Intelligence said.