Residuals from securitizations can generate close to 20% in returns though the asset class carries significant risks. Nonbanks are showing a strong appetite for the asset, but there is limited liquidity.
Revisions to disclosure requirements could prompt the issuance of publicly-registered non-agency MBS, which could eventually lead to additional demand from investors.
Figure has big plans for its loan registry, positioning it as a competition to MERS. To this point, though, Figure’s blockchain-powered DART registry has been used only in its internal platform.
The securitization rate for residential mortgages came down after reaching an elevated level in the first quarter of 2025. The rate declined for both GSE-eligible mortgages and non-agency loans during the second quarter. (Includes data table.)
Fitch, S&P and Moody’s continued to dominate the ABS market’s key sectors: vehicle and business finance. The residential MBS business is spread out more among the five major ratings services. (Includes two data tables.)
The structure helps issuers extend prefunding and investment periods beyond the 90-day limitation that applies to traditional real estate mortgage investment conduits.
Issuance of home equity loan securitizations declined in the second quarter of 2025, marking the second quarterly decline since mid-2024. Still, volume in the first half of 2025 was well above the level seen in the first half of 2024. (Includes three data tables.)
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