A court sided with junior bondholders, directing the trustee of certain legacy non-agency MBS to treat loss recoveries as subsequent recoveries.

Rithm is partnering with an unidentified large institutional investor to buy up to $1.5 billion of RTLs.

Investors saw the value of their agency MBS holdings drop in early April due to volatility tied to trade policies. Many markets recovered from the volatility by the end of June, but the agency MBS market lagged.

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.