Commercial banks and thrifts reversed a year-long trend during the fourth quarter of 2018 and increased their holdings of single-family MBS, a new Inside MBS & ABS analysis reveals. [Includes two data charts.]

Several key issues remain unresolved as the securitization industry attempts to move away from the London Interbank Offered Rate. It’s not clear which parties should enact transitions away from the benchmark rate and, moreover, a replacement hasn’t been developed yet.

The commercial MBS market is expected to stay healthy this year due to sound underwriting standards and strong investor demand, said an analyst.

Securitizations backed by oil and gas royalties likely will be issued this year, according to Fitch Ratings. The agency updated its future flow securitization rating criteria last week in anticipation of such ABS issuance.

SoFi’s first consumer loan securitization deal this year will include a higher portion of loans from the company’s lowest credit tier, but rating agencies said the credit quality of the transaction is stronger than its previous consumer loan ABS deals.

“HARP is dead, long live High LTV Refinance programs!” That’s the title of a recent report by structured finance analysts at Bank of America Merrill Lynch on the impact HARP’s replacements will have on the government-sponsored enterprises’ credit-risk transfer programs.

New Residential Investment Corp., one of the fastest growing mortgage real estate investment trusts in the U.S., has an overseas fan in Nan Shan Life Insurance Co. of Taipei City, Taiwan.

Some of the most influential trade groups in housing finance and related industries late this week went on record supporting libertarian economist Mark Calabria to be the next permanent director of the Federal Housing Finance Agency.

At his confirmation hearing before the Senate Committee on Banking, Housing, and Urban Affairs Thursday morning, Mark Calabria, President Trump’s nominee to take over the Federal Housing Finance Agency, said the rumors were true: He did, in fact, discuss plans to recapitalize the government-sponsored enterprises with administration officials.

The overall mortgage securitization rate fell slightly in 2018, with 70.0% of home loans originated in the primary market ending up in MBS pools, according to an Inside MBS & ABS analysis. [Includes one data chart.]