Sen. Jack Reed, D-RI, warned that credit-risk transfer issuance by banks could prompt a financial crisis. He asked the Fed to place limits on bank CRT activity.

A bank sought approval from the OCC to have a special purpose vehicle treated as a securitization for capital requirement purposes. The OCC demurred, noting that just because the transaction was an SPV didn’t make it an ABS.

JPMorgan Chase has begun marketing a rare prime jumbo MBS backed entirely by adjustable-rate mortgages.

The executive president of the Mexican Association of Retirement Fund Administrators noted that some Mexican investors see U.S. MBS as a riskier investment than U.S. Treasuries.

Residential MBS is projected to do fairly well during a mild economic downturn, while auto and student loan ABS may experience some issues, according to projections by Moody’s Investor Service.

Finally, a true bond market rally and lower mortgage rates! Well, don’t bet the bank quite yet.

The non-agency conduit of private mortgage insurer Radian Group expects to issue more MBS following success with its first deal.

The Mortgage Bankers Association and the National Reverse Mortgage Lenders Association suggested changes for Ginnie’s planned HMBS 2.0 program.

The IRS approved a request from an asset manager to allow commercial PACE assessments as qualifying assets for REMICs. And Fitch has new commercial MBS criteria to assess commercial PACE loans.

Researchers show that an increase in uncertainty about the Fed’s balance sheet policy boosts the yield on long-term Treasuries and increases the duration of non-agency MBS.