Even when excluding a large issuance in the first quarter of seasoned closed-end second liens, securitizations of home equity loans declined on a quarterly basis in the second quarter. (Includes three data files.)
Kroll Bond Rating Agency projects that issuance involving residential transition loans will decline by 12% on an annual basis this year, continuing the sector’s uneven yearly output.
A significant amount of wealth is expected to be transferred to younger generations in the coming years, leading to smaller mortgage amounts and a change in MBS characteristics.
The Basel re-proposal from federal bank regulators includes provisions that would limit mortgage warehouse lending and securitization by banks, according to industry participants.