The Federal Reserve is allowing its MBS holdings to run off in a predictable manner; Ginnie provides more details on change to buydown policy; Cerberus affiliate issues securitization of closed-end second liens.
Investors are showing a greater interest in ABS this month, following a rocky April. The recent softer tone taken by President Trump on tariffs seems like the reason.
CMBS securitizers can exploit an exemption in risk retention rules to unload riskier tranches. Researchers said this may signal lower loan quality to investors.
The agency moved to limit the volume of mortgages with buydowns flowing into its MBS program. The restrictions apply only to temporary buydowns, which are less concerning to investors than mortgages with a permanent buydown.