While primarily known for mortgages, Rocket has been originating consumer loans since 2016. The loans are originated in partnership with Cross River Bank, providing federal preemption of state laws.

Investors are showing strong demand for ABS that receive private ratings. The deals tend to carry bespoke terms driven by investors.

The merged entity could allow Figure to reduce warehouse costs for lenders, helping to generate more securitization volume.

Economists find that the ability of fintechs to incorporate alternative data into their underwriting allows them to expand their borrower base while at the same time reducing defaults and delinquencies.

Millions of student loan borrowers are expected to default in the coming months, but the effects could be isolated.

Federal Reserve Governor Christopher Waller said the central bank’s balance sheet hasn’t grown as much as people think, but that MBS sales might be needed to balance the duration of assets and liabilities.

It may take time for MBS investors to fully understand how use of the new credit score for underwriting loans sold to the GSEs impacts pricing and hedge strategies.

If there’s any good news on the agency MBS front it’s that new issuance volume increased from the first quarter to the second. Then again, it was driven by seasonality.

Jersey Mike’s has started marketing a $400.0 million whole-business securitization, while Nothing Bundt Cakes is prepping a $445.0 million deal.

The $213.3 million transaction has several credit strengths, including a manual review of all underwriting decisions, Moody’s Ratings said.