DOJ sees no issues for MBS, ABS from new rule restricting foreign access to Americans’ personal data; Momnt Technologies 2023 ABS issuance facing performance issues; Redwood rebrands prime residential mortgage aggregation unit to match MBS shelf.

The changes are focused on rating criteria for private student loans and will have a mixed impact on outstanding deals. Industry had raised concerns about the proposal, but Moody’s pushed forward.

S&P downgraded its ratings of a whole-business securitization from TGI Fridays, noting that cash flows are plummeting and the deal looks likely to default by early 2025.

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

Rated ABS issuance was relatively flat in the second quarter. In the non-agency MBS market, rated production was buoyed by the surging home-equity sector. (Includes two data tables.)

As per a consent order with the CFPB, Navient has agreed to pay $120 million in restitution and fines and permanently exit federal student loan servicing.

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.

The new ratings methodology would bring ratings for private student loan ABS in line with ratings for other consumer-backed ABS.

Ally Bank, Huntington National Bank and Santander Bank are in the market with credit-linked notes tied to auto loans.

The SEC or another federal entity should map credit ratings among competing rating services, similar to efforts by regulators in other countries, according to Morningstar. The firm said rating mapping can help keep competition strong among rating services.