Secondary markets

Last year’s issuance of securitizations for these non-conforming mortgages was the most since 2007.

Minus the adjustment made to account for stock price declines and goodwill, the company’s countercyclical mix of loan products was profitable, but secondary-market volatility presents a challenge ahead.

A nearly $1.9 billion commercial mortgage bond linked to a portfolio of office buildings owned by Columbia Property Trust Inc. and Allianz SE was delayed on Wednesday due to market weakness, according to two bond investors.

The transaction highlights the importance of giving the government-sponsored enterprises like Fannie access to a range of risk-sharing alternatives at a time when market volatility reportedly delayed another type of deal.

Optimal Blue researchers found correlations of 75% or more when looking at numbers of different loan-size cohorts, but the percentages came in lower when state data was analyzed.

The record amount is largely a reflection of the two banner years the mortgage market recently enjoyed, but it’s also one of the smallest gains seen in recent years.

Fannie Mae delayed a scheduled residential mortgage bond on Thursday due to market volatility spurred by Russia’s invasion of Ukraine, according to people with knowledge of the matter.

The move confirms speculation that the Federal Housing Finance Agency would return to a pre-pandemic plan to tighten requirements for mortgage lenders and servicers that work with two government-sponsored enterprises.

Raising rates and running down the balance sheet “will bring down inflation over time," she said.

The 2022 origination outlook was dropped by $172 billion and for 2023, economists at the government-sponsored enterprise made a $226 billion reduction.