In short order, Wingspan faces a dilemma that many of its peers are facing: rapidly improving real estate values are snuffing out delinquencies and draining the supply of problem loans.
The most recent regulatory foray has come from the Conference of State Bank Supervisors, which formed the Mortgage Servicing Rights Task Force to develop standards for nonbank servicers...
The rise in retail market share likely reflects the fact that smaller lenders, which are more likely to do retail lending exclusively, account for a growing share of GSE business.
An increase in short-term interest rates will have an outsized impact on commercial MBS among structured finance assets, according to Moody’s Investors Service. In a report released last week, the rating service said higher interest rates will be credit negative for existing deal performance and new issuance for commercial MBS and largely neutral for residential MBS and most ABS sectors. As interest rates rise, Moody’s said term default risk on loans backing new issue commercial MBS will increase because the loans’ debt service coverage ratios will be lower than the DSCRs at the time of origination of loans in outstanding deals. “Rates on loans backing new conduit deals will increase, thereby reducing DSCR in relation to a given property’s cash flow,” the rating service said. “New conduit deals are typically backed by loan pools that were originated no more than ...
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