A tough beginning to 2023 for non-QM lenders and securitizers? It looks that way, but the irony is that money managers, insurance companies and others continue to have a strong appetite for yield.

Fees associated with MBS trades and other services provided by the Fixed Income Clearing Corp. increased Jan. 1. The FICC said the fee hike was necessary due to lower revenues and higher expenses.

A nonbank can only hold underwater non-QMs for so long until a decision needs to be made. In the case of Angel Oak, it decided to sell roughly $350 million of product at a steep discount of 83 cents on the dollar.

Investors are being quite choosy these days when it comes to debt service coverage loans. But perhaps that's a buying opportunity for those with a strong stomach.

The Mortgage Industry Standards Maintenance Organization has released a standardized template to facilitate the bidding process for MBS between mortgage originators and dealers for Bids Wanted in Competition.

Earlier this year, banks saw an advantage in purchasing jumbo mortgages for their portfolios, but of late it seems as though the edge is beginning to erode. 

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. 

Acra Lending will continue to sell its production in whole-loan form, given the dicey nature of securitizations. CEO Keith Lind said he feels fortunate to have a strong parent and “plenty” of liquidity.

Community development financial institutions are exempt from some ability-to-repay rules and can provide up to 40% of their financial services to customers outside their targeted underserved community.

The Swiss bank is transferring most of its securitized products unit to a group of investors — affiliates of Apollo Global Management and PIMCO. The deal is expected to close in the first half of 2023.