CMBS delinquencies declined by 36 basis points to 7.81% in December, well below the peak of 10.34% in June, according to analytics provider Trepp.

Mike Fratantoni, chief economist at the MBA, said the increase is linked to the rise in COVID-19 infections, a disease that continues to whipsaw the economy.

To be eligible for pooling in Ginnie HMBS, all LIBOR-based HECM loans must close and fund prior to Feb. 1, 2021.

The share of Ginnie Mae loans in forbearance declined as of Dec. 6, but red flags remain as the economy continues to stagger.

Spreads between mortgage rates and interest paid on MBS have fallen to about 75 basis points. The long-term average is closer to 110 bps.

As the clock winds down on the Trump White House, the GSE regulator continues to pull levers. Just not the big one. Credit: Steve Mnuchin.

The MBS market can expect a push from increased availability of mortgages and improvements to ABS performance.

More non-agency originations, lower market share of non-QMs and securitization of riskier loans are likely consequences of the CFPB’s new QM standards.

Several factors will support new loan credit quality next year, including re-covering CRE fundamentals, capital market liquidity, demand for real assets and some degree of conservatism in underwriting, said Moody’s.

Hard-money servicer FCI is looking for more MBS assignments and is hopeful about 2021. Meanwhile: concerns over bids in the scratch-and-dent market?