Two classes of Metropolitan Asset Funding Inc. II, series 1998-B, have been downgraded by Moody's Investors Service.Class B-1 was downgraded from B3 to Caa1, and class B-2 was downgraded from Ca to C. The downgrades were attributed to credit enhancement levels that are deemed low in view of projected losses on the underlying pools. The transaction consists of subprime and seller-financed first-lien fixed-rate loans.
The move may have been related to the government-sponsored enterprise's duration gap but could also have resulted from many other considerations.
The lawsuit is the third against a California-based mortgage company this month after revelations of another early-2026 incident at a wholesale lender.
The Bank of International Settlements compared the recent AI investment frenzy to the canal mania of the 1830s, the British railway craze of the 1840s and the dot-com boom of the late 90s.
Fake jumbo mortgages are helping non-agency securitization growth, but these loans could have higher than expected delinquency rates, an analysis said.
Of the alternative documentation used, bank statements looking back 12-23 months, accounted for 41.6% of that group.
The Supreme Court found that President Donald Trump did not provide Lisa Cook requisite due process when he sought to remove her from the Fed last year, and for that reason denied the White House's motion to remove her immediately.
