Issuance of non-agency MBS and ABS is still being completed, but at a slower pace. Spreads have widened for new deals along with trading in the secondary market.

A longer statute of limitation and increased disclosure requirements could help attract long-term investors in the MBS and ABS market, industry experts recommend.

If the non-agency MBS market wants to avoid harsh regulations, it should seriously consider self-governance as an option, the Structured Finance Association believes.

The SEC’s Office of Credit Ratings is exploring how it can address conflicts of interest in ratings of MBS and ABS. An increase in performance-related disclosures and boosting unsolicited ratings are being considered.

Cherry Hill, a Freedom Mortgage-affiliated REIT, likes the non-QM market but isn’t ready to jump in the pond. Maybe in 2021?

Investor demand for MBS and ABS is high but then uncertainty is also increasing, which could prompt more issuance earlier in the year.

Federal regulators should make changes to capital requirements that would allow banks to complete credit-risk transfer transactions similar to the deals issued by the GSEs, according to industry participants.

The issue of allowing nonbanks into the FHLB System hasn’t gone away. A new RFI on the concept will undoubtedly ruffle some feathers.

Alternative data, machine learning, blockchain and document digitalization in securitization deals have the potential to improve credit quality, but they are untested and come with risks, says Moody’s.

Fitch Ratings expects the SOFR to become the most commonly used index post-LIBOR for new residential mortgage assets.