Annaly Capital Management plans to increase dedicated capital for its residential credit business with an emphasis on taking banks’ expanded-credit loans.
Banks have gone from being reliable buyers of agency MBS to cautious holders of the securities, prompting wider spreads and opportunities for nonbank investors.
At one point, First Republic Bank was a major contributor to non-agency MBS. In recent years, the bank retained its production, though JPMorgan Chase could move to sell the loans.
What might the thirst be for a roughly $37 billion package of mortgage servicing rights tied to non-agency loans? Deal broker MIAC Analytics is about to find out. A handful of MBS-investing REITs have been identified as possible bidders.
In no month since quantitative tightening began last June has the FOMC approached the $35 billion monthly cap on its planned MBS reduction. The latest action by the Fed won’t change that.
During a recent webinar, Casey Zuzak, a senior risk analyst at FEMA, discussed the potential uses of the agency’s National Risk Index on natural hazards within the residential MBS sector.