Rising interest rates are leading to diminished demand for non-QM whole loans saddled with lower rates. Longer term, industry participants remain optimistic.

Issuance of non-agency MBS ground to a halt near the end of March but gained some momentum this week, led by prime deals.

The Structured Finance Association has introduced a consensus-built industry guide to a new benchmark that replaces the LIBOR swap curve in fixed-rate structured finance transactions.

In the secondary market, issuers have had to deal with diminished demand for mortgage products originated prior to the recent runup in interest rates. Is the worst behind the sector?

Fannie’s CEO is set to retire. The GSE chair is departing as well; Waterfall Asset Management launches non-agency MBS with Ginnie EBOs; hurricanes impacting performance of solar ABS.

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.