WeWork is renegotiating leases in an effort to reduce costs. In a 2021 commercial MBS from JPMorgan Chase, the monthly lease payment dropped by 25% and cash reserves in the deal are dwindling.

More punitive capital treatment of commercial real estate under Basel III could prove to be a boon for CMBS issuance.

The criteria include new calculations for property values and qualitative adjustments tied to loan-to-value ratio-sizing benchmarks.

Commercial MBS issuers that source loans from affiliated lenders have lower rate spreads when compared to CMBS pooled by investment banks with loans from third-party lenders.

HUD IG launches inquiry into Ginnie’s handling of Reverse Mortgage Funding’s bankruptcy; DBRS revises rating criteria for commercial MBS; WeWork exposure in commercial MBS; another record profit for Farmer Mac; ETF targets newer agency MBS.

Non-agency CMBS issuance was up in the third quarter, thanks to a gain in retail-property securitization. But agency multifamily MBS production slumped.

Bank demand for agency MBS is weak, leading to wider spreads and losses on MBS holdings for some. Banks are also reducing their lending activity, providing an opening for nonbanks.

Delinquencies are rising on commercial MBS, driven by office properties. Losses are expected to follow and it could be years before the situation improves.

The case against UBS Securities will determine whether the antiretaliation provision of the Sarbanes-Oxley Act requires a whistleblower to prove “retaliatory intent.”

Ginnie loosens requirements for RPL pooling; Fannie sees tighter spreads with latest CRT issuance; tender offers on outstanding CRT transactions; new ABS issuers; DBRS proposes changes to commercial MBS rating methodology.