With rates continuing to decline, hedging is paramount these days. Meanwhile, certain banks and thrifts are reporting lower MBS holdings.

Fresh off its sale announcement, Deephaven Mortgage is rolling out a $439.9 million MBS backed mostly by non-QM loans. Meanwhile, with rates falling and originations in the sector remaining strong, other lenders are planning such deals as well.

The securitizations of auto loans and leases could be adversely affected by an expected decline in vehicle sales, according to rating services.

In a bid to boost liquidity for issuers, especially nonbank players, Ginnie Mae by yearend will allow financing of servicing advances.

MBS creation took off like a rocket in the second quarter and the way lenders are feeling today the good times should last for a few more months at least. But there is a downside: prepayment speeds.

Bullish signs abound for non-QM securitizations. Top-ranked lenders Angel and Citadel Servicing Corp. are coming off record originations for 2Q19. Angel Oak believes the market is underestimated.

With increased competition in financing channels, commercial MBS is losing its popularity to fund commercial real estate loans when a previous CMBS loan reaches maturity, according to a Trepp report.

The Wall Street trade group cautioned that releasing the GSEs from conservatorship without an explicit government guarantee will scare investors and reduce the liquidity in the TBA market.

The Federal Deposit Insurance Corp. plans to ease disclosure requirements for privately placed residential MBS under a rule guaranteeing the agency won’t reclaim securitization assets upon a bank’s failure.

With interest rates falling, refis have spiked, creating a wave of principal pre-payments that the Fed has used to cut its MBS holdings.