Now may not be the best time to expand in the commercial MBS space, but SitusAMC has bought the assets of Cohen Financial. A contrarian play?

Residential MBS accounted for 39% of the combined structured-finance portfolio for the 15 largest life insurers in the U.S. (Includes data chart.)

Collateralized loan obligations tied to commercial real estate are faring well thanks to the sector’s limited exposure to the lodging industry.

The share of office properties in new commercial MBS is increasing and the use of upfront debt service reserves is fluctuating as issuers address the poor performance of outstanding deals.

The Federal Reserve’s lending program is credited with helping the MBS and ABS sector even though investor demand is falling short of expectations.

The rating service its stepping away from rating new commercial MBS backed by single-borrower hotel loans due to uncertainty prompted by the coronavirus. Only one such deal has been issued since April.

The HOPE Act seeks to create a liquidity facility for commercial MBS borrowers who weren’t eligible for PPP or MSLP. The bill suggests financial institutions originate Treasury-guaranteed preferred equity instruments to qualified borrowers.

But another study found income overstatement commonly existed in commercial CMBS underwriting between 2013 and 2019, contributing to the rapid deterioration during the pandemic.

Not surprisingly, mortgages on retail and lodging properties were hit the hardest in the economic fallout of the coronavirus. Agency multifamily MBS issuance rose significantly in the second quarter. (Includes data chart.)

Commercial real estate trade groups have urged the Senate Banking Committee to expand the Federal Reserve’s Main Street Lending Program.