The diversification inherent in MBS may be the ideal tool to combat climate risk in housing finance.

Regulators are pushing higher capital requirements on banks and looking favorably at credit-risk transfer transactions, helping to increase CRT issuance. Investor demand for bank CRT is also outstripping supply.

New prohibitions against conflicts of interest in the MBS and ABS market will take effect in June 2025. But SEC officials are urging industry participants to raise compliance concerns, if any, as soon as possible.

New standards for qualified mortgages have created documentation hurdles for lenders and loan aggregators.

Proposed capital requirements for large banks would create “perverse incentives” for banks regarding securitization activity, according to a new analysis by the Securities Industry and Financial Markets Association.

The SEC has finalized a rule prohibiting certain conflicts of interest in the securitization market. Industry participants are largely happy with changes in the final version of the rule.

The change in course was fueled by mounting pressure from industry participants and members of Congress, among other stakeholders.

A 25-member bipartisan House group has called on the SEC to revise its proposed rule on conflicts of interest in the securitization market. The lawmakers said the SEC, in making the rule, went well beyond what was required by the Dodd-Frank Act.

Redwood Trust has increased its partnerships with banks as it expands its jumbo mortgage acquisitions in the third quarter.

Larger banks say federal regulators’ proposal to increase capital requirements is more stringent than international standards and came with insufficient explanations.