Moody’s Investors Service in a recent report explores the securitization of loans backed by data centers, noting the nascent asset class is susceptible to cash flow volatility.
Arbor Realty Trust plans to issue non-agency commercial MBS stocked with multifamily loans that are eligible for sale to the GSEs, expecting better execution for the loans.
The outlook for hotels and suburban offices remains questionable because excess supply is likely driving up default risk in commercial MBS backed by these property types, says Moody’s.
Most of the increased production in the third quarter came in agency multifamily MBS, and it remains to be seen whether new caps on Fannie and Freddie significantly reduce their footprint in the market. (Includes data chart.)
Commercial MBS backed by retirement properties could see a rise in delinquencies due to excess supply in the senior housing market, according to a new report by Kroll Bond Rating Agency.
After facing some legal setbacks, investors in commercial MBS have adjusted their tactics in an effort to prevent abuses of the ability special servicers have to purchase loans out of commercial MBS.
REITs, which have become key investors in MBS and MSRs, may get another crack at FHLB membership if the Trump administration gets its way. The golden chalice: discount advances available via the borrowing window.