January was a good month for MBS trades as transaction volume picked up substantially. Of course, there’s always been a seasonality to the early months of the year. The biggest question mark: rising rates.
Would social bonds backed by single-family loans rather than multifamily loans still comport with the GSEs’ mission without impacting safety and soundness? FHFA issued a request for input on the matter.
SFA and others have asked the SEC to extend the comment period on a proposed rule regarding conflicts of interest in the securitization market; SFA revises TRID grid; Fitch reviews RPL MBS; new ABS with Small Business Act Section 7(a) loans.
While the GSEs are under mandates to shrink their retained portfolios, Freddie’s holdings increased in the final three months of 2022. (Includes data chart.)
Redwood Trust isn’t planning to ramp up acquisitions and sales of prime non-agency mortgages in the near term due to elevated interest rates and strong competition from banks for jumbos.
Companies looking for financing that previously haven’t tapped the ABS market are seeing ABS issuance as an option due to changes in the broader financial market.
The MBS and ABS markets would experience significant volatility if the federal government doesn’t increase its debt limit. Uncertainty on the outcome is already prompting conservative moves among major investors.
FHA and VA are collaborating with Ginnie Mae on new low- to moderate-income disclosures for MBS pools to help investors meet environmental, social and governance mandates.
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