MBS and ABS tied to floating-rate assets could see rising delinquencies as interest rates increase. Inflation also remains a concern, though Fitch and Moody’s suggest that most deals can weather the storm.

The Fed revealed this week that any sales from its agency MBS portfolio will be telegraphed well in advance. Still, rates continue to rise.

Ginnie Mae will play a crucial role in creating a more inclusive housing-finance system as part of HUD’s strategic plan.

Issuance of expanded-credit MBS increased by nearly 40% on a sequential basis in the first quarter while prime non-agency MBS issuance was down 16%. Issuers faced higher interest rates and diminished demand from investors. (Includes data chart.)

The conduit started acquiring mortgages in mid-2021, with a focus on a limited number of lenders and relatively conservative credit standards.

A new SEC proposal wouldn’t set climate-related disclosures for MBS and ABS, though such standards are still under consideration.

The market for Ginnie Mae MBS should begin to normalize soon, according to T. Rowe Price executive Keir Joyce.

COVID-19-related circumstances were a factor for about 96% of the loans in forbearance in Ginnie MBS at the end of December.

Higher interest rates took a bite out of Angel Oak Mortgage’s profits in the fourth quarter, but its non-QM originations continue to remain strong. The firm also plans to maintain regular issuance of MBS.

Six expanded-credit MBS hit the market in the past two weeks, including the largest deal since COVID upended the sector. Activity is much slower in the space for prime jumbos and GSE-eligible investment-property loans.