Issuance of non-agency MBS backed by scratch-and-dent mortgages to date this year has surpassed issuance through all of 2023.

Deals rated by Moody’s successfully navigated the end of LIBOR reporting; vintage MBS wrapped by MBIA downgraded; GSEs, Ginnie increase MBS disclosures; ICE offers emissions estimates for MBS; new TBA trading app from South Street Securities.

Delinquencies are projected to increase across asset classes, though some sectors will be hit harder than others.

A task force at the National Association of Insurance Commissioners recommended adoption of a proposal to alter credit ratings on investments at insurance companies. However, NAIC didn’t move forward with the proposal at a meeting last week.

Fitch generally views the deals as “credit neutral” for bank ratings, though there are some instances where CRT usage could put a bank’s ratings at risk for downgrade.

Fitch Ratings sees relatively smooth sailing for residential MBS this year while times are tough in the CMBS market, and the worst could be yet to come.

Cherry Hill plans to drop its external manager, consider additional strategic options; FHFA publishes historical VantageScore data; Computershare, NewRez receive master servicer ratings; commercial MBS from Morgan Stanley downgraded.

Lenders are compensating for climate change by requiring higher downpayments for properties in areas of higher flood risk and increasing subordination levels in securities with a higher concentration of mortgages in flood zones.

Fitch is allowing ratings for certain CRT issuance from banks to be higher than the rating on the issuer. The deals need various features to receive higher ratings.

Low loan-to-value ratios and structural features are protecting investors in non-qualified mortgage MBS.