The consumer ABS sector is in recovery mode after hitting a rough patch due to the coronavirus pandemic, according to comments made during a recent webinar.

In his semiannual report to Congress on Tuesday, Fed Chair Jerome Powell described the MBS market as "vital to the flow of credit in the economy."

Demand for non-agency MBS has increased significantly in recent weeks after investors fled the market in late March and April. Issuance has been driven by somewhat seasoned non-qualified mortgages.

When the pandemic struck this spring, non-QM sales in progress fell apart involving some heavy hitters like NewRez. Now those loan buyers are getting sued for reneging on their contracts.

The two real estate investment trusts saw red ink in the first quarter as they were forced to sell assets when prices plummeted. MFA raised capital this week while AGMIT is considering its options.

An advisory panel has called for greater transparency around credit ratings. SEC officials say the reforms could be difficult to implement.

Mortgage industry vendors seem to have no trouble tapping the capital markets these days. The latest example: Fidelity National Financial.

Instead of larger, multi-issuer uniform MBS pools, FHFA wants seller/servicers to closely monitor the prepayment speeds of their broker/correspondent channels to ensure closer alignment of Fannie/Freddie pools.

The court declined to consider updates on the so-called valid-when-made doctrine. But the ruling is still subject to reconsideration.

There’s a growing fear that Ginnie Mae buyouts may soon spike as nonbanks join the “party” to protect themselves.