Bloomberg will update its agency MBS prepayment models in May to account for rising interest rates and housing market demand.

First Republic Bank has set its sights on cleaning up its balance sheet and originating loans for sale to the secondary market, which may be easier said than done.

Invictus Capital Partners was the top issuer of expanded-credit MBS in the first quarter of 2023.

First Republic Bank plans to shift to originating loans for sale into the secondary market.

However, a Goldman strategist said residential lending should avoid the pain that will be more pronounced in other sectors.

Expanded-credit MBS issuance increased by more than 75% in the first quarter of 2023. Invictus Capital Partners was the top issuer in the early months. (Includes three data charts.)

While real estate lending might not feel the brunt of a possible credit squeeze, products like jumbo mortgages could still face challenges. There are signs that banks have reduced their appetite for the loans.

Conforming jumbos, cash-out refinances and mortgages for investment properties and second homes are becoming less prevalent in deliveries to the government-sponsored enterprises. (Includes data chart.)

Bank statement, debt servicing credit ratio and home-equity line of credit products are bringing new value to originators, according to LoanNEX.

Players in the cryptocurrency-backed mortgage space still see optimism for the future even as the “crypto winter” moves into spring.