The spreads on newly issued non-agency MBS have widened in recent months, indicating weak-er demand from investors. The pricing trends follow sharp increases in issuance this year, with analysts suggesting there may not be enough investors to absorb new production.
As profit margins tighten in a softening origination market, more lenders are pondering a move into correspondent purchases, especially if the company is already table-funding mortgages in the wholesale channel.
Lawyers for issuers of non-agency MBS are revising deal documents and considering choosing a different state for issuance after an unfavorable ruling by the New York State Court of Appeals.
Speculation is rampant that the Trump administration will appoint a new director of the Federal Housing Finance Agency who will begin carving away chunks of the single-family mortgage business that Fannie Mae and Freddie Mac now finance in conservatorship.
S&P Global Ratings’ structured finance team sees strong growth potential for collateralized loan obligations backed by “green” assets, albeit with some challenges.
A federal district court in Manhattan agreed to halt legal proceedings in an investment compa-ny’s challenge of U.S. Bank’s billing practices until the primary residential MBS case involving the two parties is resolved.
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