If the proposal is implemented, some mortgage originations that have gone into bank portfolios would likely go into MBS instead. The impact on bank investment in MBS and ABS looks to be much more modest.
A pending proposal led by the Federal Reserve could see big banks facing higher capital requirements on their holdings of securities classified as available-for-sale.
Financial institutions must take a closer look at their enterprise risk management strategies, especially in the wake of recent events in the banking industry, a Ginnie Mae risk analyst warns.
A suggestion for limiting interest rate risk at banks; tighter spreads for Fannie’s new CRT; Victory Park Capital launches structured finance unit; and more.
SEC staff are considering revisions to a proposed rule that would prohibit conflicts of interest in the securitization market. But the agency reportedly won’t budge on some portions of the rule.
The volume of Ginnie Mae mortgage-backed securities issued last month increased slightly from April, driven by a modest uptick in FHA activity. VA deliveries to Ginnie declined in May. (Includes two data charts.)