An appeals court in Minnesota upheld a practice in the commercial MBS market allowing for the creation of litigation reserve accounts. Junior investors in a 2007 issuance from Wachovia challenged the practice.

Lendbuzz, which focuses on an artificial intelligence-powered platform to underwrite auto loans, closed a AAA-rated $218.7 million ABS.

Fitch Ratings warned that MBS and ABS could face credit implications following cyberattacks involving the parties in structured finance transactions even when the events don’t directly lead to payment defaults.

What goes down must go up again? That seems to be the story of the fourth quarter’s revival in agency MBS values. Declining mortgage rates gave agency securities holders a shot in the arm.

New metrics are required to quantify the risk of climate change and rising hazard insurance costs on collateral in MBS.

The Fed launched the Bank Term Funding Program amid the regional bank crisis in 2023 to help avoid fire sales of MBS and other assets. The program is set to end in March as scheduled.

A New York Federal Reserve study found that the secondary market loan sales could help boost capital at CDFI-approved lenders.

Panel discussions at the summit covered Ginnie’s digital collateral, social impact investing and manufactured housing, among other topics.

Fed stays course on MBS sales; SFA close to revising data tape for prime non-agency MBS; MBS on watch for rating upgrades by Fitch; subprime auto ABS impairments rise; commercial MBS delinquencies decline; Fannie sees tighter spreads for latest CRT; Morningstar not ready to give positive commercial MBS credit for “mass timber” construction.

Declining multifamily valuations are pushing up capitalization rates while reducing debt service coverage ratios.