Fannie priced a credit-risk transfer deal linked to single-family mortgages; the SEC won’t take an enforcement action against Two Harbors; performance of consumer ABS backed by loans originated by marketplace lenders expected to decline.
Industry participants are confident that the non-agency market can absorb some GSE mortgages that will otherwise be subject to higher fees; SFA highlights ABS LIBOR complication; Credit Suisse modifies MBS issued in 2019; New Residential set to issue single-family rental securitization.
There’s a growing market for ABS where deals are negotiated discreetly between the issuer and a handful of investors. The securities typically don’t receive credit ratings.
The defendants said the case was not timely and the bureau’s allegations didn’t apply to them because of statutory wording. The judge, using dictionary definitions and SCOTUS precedent, rejected those claims.
The ABS includes royalties for more than 200 songs that hit number one on the charts. However, none of the songs were disclosed in a rating report on the transaction, and only three artists were identified.
Some investors in MBS and ABS are ready to discard data collected in the past two years due to distortions from actions by the federal government. One problem: projecting asset performance moving forward.
Fitch and DBRS released reports outlining the risks, physical or otherwise, of climate change to MBS and ABS. They said impacts varied by area and that vigorous policy efforts could help stem losses.
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