Would social bonds backed by single-family loans rather than multifamily loans still comport with the GSEs’ mission without impacting safety and soundness? FHFA issued a request for input on the matter.

A new report outlines the risks CSS poses for the GSEs and the secondary mortgage 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 GSEs’ social disclosures should be as granular and specific as those reported for credit-risk transfer deals, according to investors.

The non-agency MBS market fizzled badly at the end of 2022 as new issuance declined in all the key product categories. The ECM sector held up a little better than the prime non-agency market, while NPL/RPL securitization tanked. (Includes three data charts.)

With lenders pushing mortgages that include a temporary buydown feature, MBS investors are pondering prepayment behavior for the loans. Expect loans with temporary buydowns to exhibit prepayment speeds similar to ARMs, according to an industry analyst.

The prime non-agency market took a disproportionate decline in securitization rate during the third quarter, while the government-insured sector was relatively unscathed. (Includes data chart.)

Freddie Mac issued 84 green single-family mortgage-backed securities in 2021 that save 192,168 million BTUs of energy per year.

KBRA said that third-quarter MBS issuance volume didn’t meet its expectations and will drop rapidly in the coming year. Meanwhile, both DBRS and Moody’s noted that performance is stabilizing. 

Now that the purchase-mortgage market is getting squishy, agency MBS issuance may sink to its lowest level in years. New pricing from the GSEs may be offset by a potential cut in FHA premiums. (Includes two data charts.)