Securitization

Deterioration in credit quality should put strain on collateral originated in late 2021 and early 2022, affecting performance, Barclays Credit Research said.

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.

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.

The strategists are among the most bullish top-ranked voices on US equities and expect rate-sensitive growth stocks to maintain their outperformance over the value basket.

More of the business is now controlled by independent lenders, and with mortgage volumes plunging this year, many are struggling to stay afloat.

The company and its portfolio manager Ashish Negandhi, who was also penalized, allegedly misinformed investors about delinquency rates in a 2018 fix-and-flip securitization.

But private-label securitization issuance this year is expected to be lower than 2021's activity.

The company looks to leverage its understanding of credit risk developed through its mortgage insurance and analytics operations.