Commercial MBS backed by hotel loans are at risk as the coronavirus containment efforts have led to sudden slowdown of mobility.

Continued retail store closures put billions of dollars in commercial MBS at risk. Fears of coronavirus outbreak added even more pressure.

Alternative data, machine learning, blockchain and document digitalization in securitization deals have the potential to improve credit quality, but they are untested and come with risks, says Moody’s.

Two prominent GSE multifamily lenders cut production in the fourth quarter as they adjusted to the new investment limits set for Fannie and Freddie. The new caps are unlikely to constrain GSE business in 2020.

Store closings are piling up in 2020, adding pressure to loans backing retail CMBS. Malls in secondary and tertiary markets are vulnerable.

As the industry moves from LIBOR to SOFR, the ARRC is seeking input on whether the spread-adjustment methodology for cash products should be consistent with what’s adopted internationally for derivatives.

While Fannie, Freddie and Ginnie continued to dominate the business of securitizing income-property mortgages, issuance of non-agency CMBS gained ground in 2019 thanks to significant increases in office, industrial and multifamily transactions.

The next few years might be even more challenging for mall loans backing commercial MBS, with refinancing seen as difficult and delinquencies ticking up, according to rating agencies.

Single-family rental securitization issuance in 2019 fell by 35%. Invitation Homes, the largest issuer of such deals in 2018, avoided the market entirely, focusing instead on more attractive types of financing.