Hope springs eternal for a revival in Ginnie Mae early buyout activity this year. Two missing ingredients: a steeper decline in mortgage rates and an end to the VA moratorium on foreclosures.

Losses on conduit commercial MBS declined by 25% on an annual basis in 2023. However, loss severities remained elevated and delinquencies are rising.

Santander Consumer USA is a long-time issuer of auto ABS, but its affiliated Santander Bank only started originating auto loans in recent years. And to this point, the bank has issued only CRT with auto loans.

The Structured Finance Association, which is developing a compliance tool to facilitate uniformity in the non-agency MBS market on QM standards, has run into a vexing issue regarding the definition of a QM.

After years of lobbying by the mortgage industry, Congress gave Ginnie Mae’s budget a boost for fiscal year 2024.

GreenState Credit Union issued its first auto ABS this week and M&T Bank returned to the market for the first time since 2013.

Angel Oak Capital Partners introduced an investment program tailored to increase insurance company investments in non-agency whole loans and securitizations.

Fitch updated 61 non-agency MBS following changes to its structured finance rating criteria in January.

Lenders typically hedge loans by short selling the type of security those loans will eventually go into. However, if the market for that security is unattractive, they can cross-hedge into better performing markets if their pricing movement correlates with the loans.

The diversification inherent in MBS may be the ideal tool to combat climate risk in housing finance.