“Issue debt while you can.” That seems to be the mantra of nonbank mortgage lenders and even real estate mortgage investment trusts. The latest sellers: UWM and PennyMac.
What a difference a year can make. Last spring, the REIT was getting margin-called and selling MBS. Today, it’s buying huge mortgage banking franchises.
An asset manager based in Toronto agreed to acquire Annaly’s commercial business. The REIT will put an even greater emphasis on its investments in residential MBS.
Last March, major dealers simply didn’t have the liquidity to accommodate the volume of agency MBS being sold. Would a clearing facility speed up settlement enough to prevent a similar market failure in the future?
A 30-day average of SOFR would make a good replacement for LIBOR when pricing new MBS and ABS, according to a recommendation from a committee of industry participants convened by the Fed.
Securitizing mortgages can be expensive and recent PSPA changes might force the hand of smaller lenders, at least that’s how some trade groups see it. (Includes three data charts.)
Fannie Mae and Freddie Mac drove a significant increase in mortgage securitization rates in 2020, while jumbo securitization was subdued and expanded credit was hobbled by pandemic upheaval. (Includes data chart.)
Top life insurance companies increased their ABS holdings substantially in 2020 and commercial MBS investment was up as well. But residential MBS portfolios declined. (Includes data chart.)
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