The settlement includes $19.4 million in disgorgement of profits the SEC said BMO generated between December 2020 and May 2023 through misleading sales of agency CMOs.

Initial projections suggest MBS backed by collateral in areas affected by the California wildfires will largely be unscathed.

Critics argue that, if Fannie Mae and Freddie Mac are released from conservatorship without an explicit government guarantee, MBS investors will demand wider spreads to cover the added credit risk.

Stifel is telling its clients to reallocate into MBS from corporates. Meanwhile, MBS trades slipped in December but posted a strong year.

Many analysts are projecting increases for issuance of MBS and ABS in 2025. Delinquencies are also expected to rise, though not to troublesome levels.

Interest rate cuts by the Fed prior to the 2023 banking crisis resulted in more than $2 trillion in mark-to-market losses on banks' Treasury and MBS holdings.

DOJ sees no issues for MBS, ABS from new rule restricting foreign access to Americans’ personal data; Momnt Technologies 2023 ABS issuance facing performance issues; Redwood rebrands prime residential mortgage aggregation unit to match MBS shelf.

Agency pass-through MBS remain the most popular asset in bank holding company trading accounts, but there was a sharp increase in agency multifamily securities during the third quarter.

The securitization rate for residential mortgages hit an estimated 68.6% in the third quarter, as more conventional-conforming loans flowed into GSE MBS.

The new bonds help the GSEs reduce the amount of capital they must set aside under the enterprise regulatory capital framework.