The government-sponsored enterprise plans to issue $3 billion to $5 billion in MBS based on pools of reperforming loans with principal forbearance this year.
COVID-19-related payment relief plans continued to put pressure on student loan ABS. S&P recently lowered its ratings on many FFELP student loan ABS maturing in the next three years to speculative grade.
Morningstar argues it can use undisclosed loan-specific stress adjustments for subjective reasons, including to bring the rating for a commercial MBS in line with expectations based on similar deals.
Sen. Pat Toomey, R-PA, argued that the Democrats’ $1.9 trillion COVID relief bill and the Federal Reserve’s bond purchases are no longer necessary, and that more targeted, less costly measures are in order.
Good news for the commercial mortgage sector: CRE-related equity values are rising. Meanwhile, the MBA is optimistic about commercial real estate lending this year.