When times turn tough, some mortgage REITs start cutting the dividends they pay shareholders, but not all. Meanwhile, book values are getting slammed. A time to buy these equities or sit on the sidelines?
CAS, STACRs, CIRT and ACIS volume were all down sharply during the first nine months as origination volume continued to decline. (Includes data table.)
Commercial MBS issuers that source loans from affiliated lenders have lower rate spreads when compared to CMBS pooled by investment banks with loans from third-party lenders.
HUD IG launches inquiry into Ginnie’s handling of Reverse Mortgage Funding’s bankruptcy; DBRS revises rating criteria for commercial MBS; WeWork exposure in commercial MBS; another record profit for Farmer Mac; ETF targets newer agency MBS.
Spreads on agency MBS widened during the third quarter, leading to a decline in values for agency MBS holdings. Still, investors stress that agency MBS is an attractive investment option.
A 25-member bipartisan House group has called on the SEC to revise its proposed rule on conflicts of interest in the securitization market. The lawmakers said the SEC, in making the rule, went well beyond what was required by the Dodd-Frank Act.