AG Mortgage Investment Trust filed a lawsuit to stop Royal Bank of Canada from selling commercial MBS the company is a counterparty to. The bank for now has decided to postpone the auction.

On the same day that the Federal Reserve bought its first $1 billion in agency multifamily MBS, it purchased more than $41 billion in agency single-family MBS.

During the 2008 financial crisis, investors in non-agency MBS sought repurchases from issuers, citing faulty underwriting and disclosures. A similar surge in putbacks could be on the way for the auto ABS market.

Delinquencies in commercial MBS loans are likely to jump due to the economic impact arising from the COVID-19 outbreak, with hotels and malls likely to be the early casualties.

The coronavirus economic assistance package is signed, sealed and delivered but concerns remain over the ability of nonbanks to pay MBS holders in the event delinquencies spike over the short term.

A resumption in quantitative easing — at a pace that dwarfs asset purchases during the financial crisis — is just one of several Fed actions to keep credit markets functioning through the coronavirus crisis.

The FHFA’s move to allow Fannie Mae and Freddie Mac to buy MBS has a narrow and specific goal.

A month ago, investors were gobbling up MBS with non-QMs. Now, the sector is shut down due to the upheaval caused by the coronavirus.

To make sure Fannie and Freddie get the most value out of their CRT deals, the FHFA has directed them to wind down front-end transactions.

Retail commercial MBS was already out of favor before the coronavirus, which has worsened the problems facing the sector.