Researchers tracked ratings and defaults on non-agency MBS between 2013 and 2022, finding that Morningstar’s ratings were more conservative than ratings from the big three firms. However, Morningstar’s ratings produced more “false alarms” about potential defaults than the big firms.
Changes to Common Securitization Solutions, including being renamed U.S. Financial Technology, appear to set the company up to serve additional secondary mortgage market participants.
Banking regulators proposed modifying the enhanced supplementary leverage ratio that applies to large banks. If implemented, it could lead to the banks to increase their holdings of Ginnie Mae MBS.
JPMorgan Chase Bank issued a new credit-risk transfer deal and FinBe brought a subprime auto ABS. The last time either issuer offered a similar transaction was in 2021.
It’s the first auto loan ABS with loans aggregated from multiple credit unions. Alloya is a corporate credit union that provides services to more than 1,300 credit unions and other entities.
ABS comprised of solar loans, and the companies that service them, are under pressure as uncertainty swirls around the future of Biden-era clean energy provisions.
Years after the agency first sought public comments on the regulation, the SEC’s Office of Structured Finance is interested in taking another crack at finding ways to improve the rules for ABS.
Fannie will take the first losses on the transaction, with additional losses borne by Bayview and investors in the deal. That’s a change from the typical CRT from Fannie where a third-party like Bayview isn’t involved.
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