S&P has proposed revisions to its criteria for judging the adequacy of risk-based capital when assessing insurers. The revision would prompt higher capital requirements for certain MBS and ABS held by insurers.

It seems that some non-QM lenders learned a valuable lesson this spring: When in doubt, hedge your production pipeline. Then again, it doesn’t apply to all loan types.

As the non-QM market works out its kinks, deal activity should pick up, despite higher interest rates. Due diligence providers like Clayton are hoping the largess comes their way.

New reports from S&P and Fitch look at how home price appreciation, affordability and housing overvaluation trends, especially in certain geographic markets, might impact residential MBS.

Securitization of reperforming and nonperforming mortgage loans fell sharply in the first quarter of 2022, along with softening in the prime non-agency MBS market. Expanded-credit issuance stayed strong. (Includes three data charts.)

In the secondary market, issuers have had to deal with diminished demand for mortgage products originated prior to the recent runup in interest rates. Is the worst behind the sector?

MBS-investing REITs continue to pay sweet dividends but the asset value of their holdings has come under pressure thanks to spiking interest rates. First-quarter earnings should be revealing.

Fannie’s CEO is set to retire. The GSE chair is departing as well; Waterfall Asset Management launches non-agency MBS with Ginnie EBOs; hurricanes impacting performance of solar ABS.

MBS and ABS tied to floating-rate assets could see rising delinquencies as interest rates increase. Inflation also remains a concern, though Fitch and Moody’s suggest that most deals can weather the storm.

Non-QM lending was supposed to be an industry bright spot this year, but unhedged loan pipelines are causing selected damage throughout the sector. One victim: Sprout Mortgage.