Fitch Ratings expects CDFIs to sell more of their production in the secondary market due to rising interest rates and a shift by banks to tighten underwriting standards.

It turns out selling securities at a loss wasn’t a strategy for success for banks facing deposit runs in March 2023.

Delinquency rates on commercial MBS in April hit a level last seen in September 2021. And AAA investors in a commercial MBS suffered a loss this month, a first for deals issued after 2010.

The $3.4 billion whole-business securitization received a preliminary BBB rating from Kroll Bond Rating Agency.

SIFMA warned that Freddie’s proposal to acquire second liens could pose risks to the to-be-announced, credit-risk transfer and consumer-loan markets. SFA said the proposal, if approved, should be limited.

Although Fannie saw a 20% decline in Supers MBS issuance in the first quarter, Fed data show a substantial increase in the central bank’s “aggregated” holdings of Fannie securities. (Includes two data tables.)

Beginning in June, Ginnie will allow commingling of digital and paper mortgages in its MBS.

Demand in the secondary market for non-qualified mortgages is helping to fuel originations of the loans. Delinquencies in the sector have ticked up but aren’t yet a major concern.

Banks are looking for capital relief, regulators are making issuance of credit-risk transfers easier for banks to complete and investor demand for the deals is strong.

With an eye toward attracting more mature ESG investors from Europe, Fannie and Freddie updated their Mission Index scoring.