The new year has arrived and along with it a bond market rally that’s causing interest rates to fall, sparking hope that first-quarter mortgage originations and securitizations might turn out to be better than anticipated.

After having initially been brushed off as unnecessary, a pilot program that allowed Freddie Mac and Fannie Mae to help finance single-family rental activity is now being hailed a success.

A new regulation set by the European Union for MBS and ABS issuance took effect at the start of the year. Though the rules don’t directly apply to U.S.-based deals, issuers here might have to comply if they want European investors to buy into their bonds.

Ginnie Mae again failed to correct an accounting flaw in its financial statements, prompting the Department of Housing and Ur-ban Development to withhold its opinion on the agency’s 2018 financial statement for the fifth consecutive year.

Seasonal factors slowed production of Fannie Mae and Freddie Mac MBS during the fourth quarter, although the refi sector showed some resilience in cash-out transactions. [Includes three data charts.]

The Federal Housing Finance Agency proposed new standards Fannie Mae and Freddie Mac must use to consider approving new credit-scoring models.

DBRS continued to rank as the most active rating servicing in non-agency MBS as of the end of the third quarter, with S&P Global leading the industry in ABS ratings, according to a new ranking by Inside MBS & ABS. [Includes two data charts.]

Residential mortgage securitization rates edged higher in the third quarter of 2018 but remained below the peak levels set in the aftermath of the financial crisis. [Includes one data chart.]

Participants in the MBS and ABS market took major steps toward addressing the end of the London Inter-bank Offered Rate. This week, the Structured Finance Industry Group released a draft of best practices for transitioning new issuance away from LIBOR, echoing similar moves by the Al-ternative Reference Rates Committee administered by the Federal Reserve and the New York Fed.

With many consumers shopping at brick-and-mortar stores this holiday season, mortgages on department stores and shopping malls that are included in commercial MBS will likely see good performance in the end of 2018, said DBRS. [Includes one data chart.]