Securitization

These types of transactions largely disappeared from the market for years after the Great Recession.

While Bids Wanted in Competition have been used by MBS sellers in the past, a lack of standardization of data points has reduced competition and price, the organization said.

The uptick in cash balances might indicate the challenges issuers are facing originating new loans for reinvestment in commercial real estate CLOs.

Scores will be assigned to all loan pools created since 2010, including future securitizations, and are expected to help investors determine the share of mortgages meeting specific characteristics.

The company is floating the possibility of selling a portion of its loan portfolio to free up liquidity in coming months, leaders said.

Some 2.9% of the pool—comprised of 1,705 loans—was 30 days delinquent, and 68.3% of the loans had experienced one or more delinquencies in the past 24 months.

The Federal Reserve Bank of Philadelphia also found that interest rate spikes are preventing modification programs from effectively reducing principal and interest payments as originally intended.

Altogether, the lender has reduced funding capacity by over $900 million in the past month.

The amount of outstanding mortgage-backed securities insured by the agency kept growing despite an uptick in rates.

The move follows two consecutive quarterly losses for the REIT and comes just days after its sister non-QM lending business laid off 20% of its staff.