Following pressure from industry participants and lawmakers, the Federal Reserve added legacy commercial MBS and CLOs to the TALF. Industry is hoping that eventually non-QM assets might be covered.
AG Mortgage Investment Trust filed a lawsuit to stop Royal Bank of Canada from selling commercial MBS the company is a counterparty to. The bank for now has decided to postpone the auction.
On the same day that the Federal Reserve bought its first $1 billion in agency multifamily MBS, it purchased more than $41 billion in agency single-family MBS.
Delinquencies in commercial MBS loans are likely to jump due to the economic impact arising from the COVID-19 outbreak, with hotels and malls likely to be the early casualties.