Participants in the MBS and ABS market have widespread concerns about a proposal to adjust capital requirements for large banks. They argue that the proposed capital requirements are unnecessarily high.

FINRA proposed reducing trade reporting requirements to one minute after execution from 15 minutes. Many trades of agency debt securities and TBA MBS already meet the proposed reporting requirements, while ABS reporting lags.

New attributes will give investors a better understanding of the status and pace of MBS prepayments.

Changes to the Ginnie Mae program were included among 35 priority recommendations for fiscal 2024 from the Department of Housing and Urban Development’s Office of Inspector General.

The rapid runoff at the Federal Reserve’s overnight repo operations could mean quantitative tightening will end sooner than expected.

The repo market continues to be a source of liquidity for nonbanks with large mortgage servicing portfolios. One recent transaction involves a $500 million credit granted to loanDepot by Goldman Sachs and others.

The ABS market was the only sector in structured finance to boost production in 2023, although issuance slipped in the fourth quarter. Residential MBS accounted for most of last year’s steep decline.

What’s the latest with Ginnie’s management of $19.5 billion in HECMs under its control thanks to the failure of RMF? Hard to say. But it appears that Carrington is handling the servicing chores, possibly, through a subservicer.

Industry veteran Chris Bennett explains why the five-year Treasury is the proper benchmark for current coupon MBS.

Researchers at the Office of Financial Research have developed new ways to gauge the risks banks face from potential losses on their securities holdings. The researchers caution that a number of banks showed signs of stress similar to the banks that failed in early 2023.