UBS disclosed that it’s set to sell Select Portfolio Servicing, a major servicer of loans in non-agency MBS, to an unidentified buyer.

Sen. Jack Reed, D-RI, warned that credit-risk transfer issuance by banks could prompt a financial crisis. He asked the Fed to place limits on bank CRT activity.

A bank sought approval from the OCC to have a special purpose vehicle treated as a securitization for capital requirement purposes. The OCC demurred, noting that just because the transaction was an SPV didn’t make it an ABS.

JPMorgan Chase has begun marketing a rare prime jumbo MBS backed entirely by adjustable-rate mortgages.

The executive president of the Mexican Association of Retirement Fund Administrators noted that some Mexican investors see U.S. MBS as a riskier investment than U.S. Treasuries.

Residential MBS is projected to do fairly well during a mild economic downturn, while auto and student loan ABS may experience some issues, according to projections by Moody’s Investor Service.

Trade groups believe the proposed rule will harm consumers by tightening credit standards. An association representing debt collection agencies warned that the proposal could lead borrowers to take on additional debt they can’t afford.

The servicing sales market has slowed this summer, but there are rumblings of activity. Freedom Mortgage, for instance, is peeling off a piece of its conventional portfolio. And a sale of SPS is in the works.

With mortgage originations coming off two challenging years — to put it mildly — now might be a good entry point for warehouse providers. At least that’s what Scotiabank is betting on.

While still offered, piggyback loans are relatively rare in today’s high-interest-rate environment.