Securitization of office-property mortgages fell to its lowest level in 10 years, while retail and lodging also saw big declines in the third quarter. Agency multifamily MBS issuance held up better, paced by a modest gain in Freddie production. (Includes two data charts.)
New York-based Basis Multifamily Finance becomes the first minority/women-owned business enterprise in Fannie Mae’s Delegated Underwriter and Servicer Program.
If commercial lending rates stay about where they are now, a quarter of loans that expire within the next year will need to either bring in 50% more income than they are currently or reduce their debt by a third.
Super-senior classes of conduit CMBS transactions should be resilient if office loan values fall, but the lower end of the capital stack may not hold up as well, according to S&P Global Ratings.
Agency single-family MBS production continued to erode in the third quarter despite a modest pickup in purchase loans. Meanwhile, issuance fell sharply in the commercial MBS and ABS markets. (Includes three data charts.)
Initial estimates on Hurricane Ian-related losses; Biden administration limits student loan forgiveness on loans in ABS; Credit Suisse’s financial difficulties trickle down to an ABS.
JPMorgan Chase continued to hold the biggest portfolio of MBS/ABS in trading accounts. Bank holding companies posted a 14.9% increase in agency MBS held in trading accounts. (Includes data chart.)
A lawsuit filed by New York’s attorney general against Donald Trump put a spotlight on valuation practices for commercial properties. Commercial MBS participants note that protections are in place regarding potentially inflated appraisals.
DBRS released proposed updates to its North American CMBS Insight Model and multi-borrower rating methodology, and Moody’s proposed revisions to its SFR securitization loan-level legal analysis framework and added transparency on analysis of transaction-level legal risks.
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