Securitization

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.

The Fed chair said actively selling securities will become necessary as it looks to reduce its balance sheet, but not anytime soon.

Clients of dv01 leverage the firm's loan-level data for a range of purposes, including securitization and performance analysis.

Bond credit enhancement has benefited from historically higher-than-average prepayment speeds and low realized losses despite a COVID-related rise in delinquencies.

In a letter addressed to the heads of the agency and of Ginnie Mae, the association asked them to consider recommendations made by a former government housing policy leader.