Agency MBS market recovering after dismal 2022; KBRA generally plans to decline reviewing RAC requests tied to switches from LIBOR to term SOFR in the commercial MBS market.

Even though the upfront fee Fannie and Freddie impose on commingled securities has been sharply reduced, some industry watchers argue that it has permanently damaged the market for Supers and REMICs.

The proposed rule is meant to prohibit ABS issuers from engaging in “conflicted transactions” that could influence the deal structure in a way that puts their interests ahead of those of investors.

Thanks to rising rates and sagging home values, early buyouts from Ginnie MBS are starting to look long in the tooth. Opportunities are out there, but are not for the faint of heart. (Includes data chart.)

The agency’s earnings increased in fiscal year 2022 while its MBS issuance declined by 30.5% on an annual basis. Ginnie defended its reliance on contractors and upcoming revisions to capital requirements.

Sophisticated pricing models for agency MBS, like the Bloomberg MBS Index, are subject to various sorts of model error. Experts say it takes an expert to know how to use them.

An industry trade group wants Ginnie to make permanent an assistance program that aided just a handful of nonbank servicers.

The GSEs’ social disclosures should be as granular and specific as those reported for credit-risk transfer deals, according to investors.

Standards involving delinquencies and in-person audits of issuers will remain on hold through at least the end of June.

While agency MBS trading typically slows towards the end of the year, the average daily volume of trades in December 2022 was the lowest on record since the beginning of 2020. Banks are showing weak demand for the securities.