Word is out: Money can be made in the Ginnie EBO space. The strategy is attracting investment funds but it’s not as easy as you might think.

The deal bears many of the characteristics of previous front-end credit-risk transfer deals that PennyMac entered into with Fannie Mae.

Speakers at this year’s ABS East conference — held online — focused on how the coronavirus impacted assets and the outlook for 2021.

Investors helped nonbank servicers with their advancing obligations for delinquent mortgages this year, but the outlook is murky.

Whether its warehouse borrowing or debt restructuring, the capital markets remain a favorable place to be for nonbank lender/servicers.

The delinquency rate on commercial MBS in November slipped modestly thanks to continued COVID-related relief. The recovery ahead will be slow, particularly for the lodging and retail sectors.

Freddie issued its first multifamily K-deal in which both the floating-rate bonds and the underlying mortgages are indexed to SOFR.

The use of LIBOR as an index is slated to end in just under 13 months but the benchmark administrator has other ideas. One issue: legacy contracts.

Performance on non-agency MBS has improved after the spike in late payments seen in the spring. However, borrowers who are still delinquent could prompt losses for investors.

The FHFA’s capital requirements include relatively harsh treatment of credit-risk transfer transactions from Fannie and Freddie but that view could change under the Biden administration.