A number of nonbanks involved in the ABS market have opted for bank charters in recent years. The capital requirements and oversight that come with that status will benefit nonbank ABS, Moody’s said.

The downgrade watch was attributed to deterioration in performance, underperformance and liquidity challenges.

A property law expert said securitizing real property interests encourages home price inflation.

International players and smaller insurance companies are expected to increase their investments in expanded-credit MBS.

Urban Institute researchers say the mortgage industry will experience slightly better capital treatment as a result of the changes to the Basel III Endgame, but they recommend some improvements.

Trade groups expressed concern that proposed changes to Rule 15c2-11 of the Securities Exchange Act could accidentally ensnare ABS.

The ratings service said a “selective, disciplined, transaction-specific approach” is why its single-asset/single-borrower portfolio outperforms ratings by other firms.

Economists note that the pricing of mortgage credit risk depends not only on the quality of the underlying mortgages but also on who ultimately bears that risk.

Ginnie Mae reminded security holders last week that they have the ability to collapse a security group within a multiclass transaction on short notice, an option the agency said has been underutilized.

Byzfunder issued its first ABS last week, a transaction that was three times oversubscribed by investors. Repeat issuers are also ramping up originations and issuance volume.