Initial details on the planned re-proposal suggest that banks will benefit from the mortgage concessions by federal regulators.

For the sixth straight quarter, CAS issuance at Fannie Mae exceeded STACR issuance at Freddie Mac. Overall CRT issuance by the GSEs was down 18.0% in the second quarter. (Includes data table.)

Sen. Jack Reed, D-RI, warned that credit-risk transfer issuance by banks could prompt a financial crisis. He asked the Fed to place limits on bank CRT activity.

Fitch generally views the deals as “credit neutral” for bank ratings, though there are some instances where CRT usage could put a bank’s ratings at risk for downgrade.

Fannie Mae releases data on the potential impact the historic storm may have had on CAS and CIRT deals.

Arbor Realty Trust affirms accounting, business practices; Fannie offers new CRT tranche; two ABS issuers under pressure.

If Freddie Mac is allowed to purchase second mortgages, critics argue there should be clearly articulated capital requirements, loan-to-value ratio limits and debt-to-income ratio restrictions.

Ally Bank, Huntington National Bank and Santander Bank are in the market with credit-linked notes tied to auto loans.

Lenders are compensating for climate change by requiring higher downpayments for properties in areas of higher flood risk and increasing subordination levels in securities with a higher concentration of mortgages in flood zones.

Fitch is allowing ratings for certain CRT issuance from banks to be higher than the rating on the issuer. The deals need various features to receive higher ratings.