Some investors in MBS and ABS are ready to discard data collected in the past two years due to distortions from actions by the federal government. One problem: projecting asset performance moving forward.

Changes in FHFA leadership and in the structure of some CRT offerings have altered the calculations of investors.

The interest rate picture is cloudy and MBS trades are heading south. Time to worry? We’ll know soon, or maybe not.

The Fed will reduce its purchases of agency MBS more quickly than initially planned; the Senate confirmed Alanna McCargo as Ginnie Mae’s president; Parthenon Capital Partners will acquire a majority stake in Kroll Bond Rating Agency; KBRA raises concerns about non-agency MBS due diligence sampling practices; United Wholesale offers its first non-agency jumbo MBS.

Securitization rates drifted lower in the third quarter in most segments of the mortgage market, and primary-market originations of agency-eligible loans declined. (Includes data chart.)

Analysts at Keefe, Bruyette & Woods expect prepayment rates on agency MBS to decline further in 2022 as fewer borrowers have incentives to refi.

The “easy money” may be over in the Ginnie early buyout space. Some bidders are paying north of 102 for product.

The mega REITs could be poised for a rebound in share price. Credit, in part, the Federal Reserve?

Fitch and DBRS released reports outlining the risks, physical or otherwise, of climate change to MBS and ABS. They said impacts varied by area and that vigorous policy efforts could help stem losses.

All three agencies saw new MBS issuance slow in November, though Ginnie held up slightly better. Both purchase-mortgage and refinance activity were down. (Includes two data charts.)