Thanks to rising rates and sagging home values, early buyouts from Ginnie MBS are starting to look long in the tooth. Opportunities are out there, but are not for the faint of heart. (Includes data chart.)

The agency’s earnings increased in fiscal year 2022 while its MBS issuance declined by 30.5% on an annual basis. Ginnie defended its reliance on contractors and upcoming revisions to capital requirements.

Sophisticated pricing models for agency MBS, like the Bloomberg MBS Index, are subject to various sorts of model error. Experts say it takes an expert to know how to use them.

An industry trade group wants Ginnie to make permanent an assistance program that aided just a handful of nonbank servicers.

Santander Bank’s CRT is backed by loans that have seasoned for 6.3 years; Two Harbors Investment earned comprehensive income of $1.83 to $1.87 per weighted average basic common share in the fourth quarter.

For several quarters now, commercial banks have been hanging onto underwater non-QMs originated by their warehouse clients because a sale or securitization would blow a hole in the originator’s financial hull. But one of these days, the situation will come to a head, if it hasn’t already.

Spreads on auto ABS issuance are tightening and issuers are upsizing deals amid strong demand.

The GSEs’ social disclosures should be as granular and specific as those reported for credit-risk transfer deals, according to investors.

Standards involving delinquencies and in-person audits of issuers will remain on hold through at least the end of June.

Governance and social risks are the main ESG factors that affect credit ratings of MBS and ABS, while environmental relevance remains low, according to Fitch Ratings.