“True lender” risk and legal scrutiny are a growing concern for issuers of consumer loan ABS.

President Trump’s directive to lower interest rates helped spur a tightening in mortgage spreads, but economists are skeptical of the long-term impact of the move involving GSE purchases of MBS.

The executive order seeks to limit institutional investors from purchasing single-family homes, but some market participants believe it would do little to boost housing affordability nationally.

The executive order would prevent federal agencies and the government-sponsored enterprises from facilitating the acquisition of a single-family home by a large institutional investor.

Rating services caution that President Trump’s proposed one-year credit card rate cap would negatively impact card issuers and ABS issuance.

KBRA introduced a new ABS rating methodology for data centers and Fitch updated its ratings criteria for equipment lease and loan ABS.

Both wholesale and correspondent lending look poised to increase this year, according to industry participants.

Wells Fargo, Bank of America, and Chase increased mortgage production during the fourth quarter.

Originations at BofA increased by 26.7% from the third quarter while Wells' production was up 7.0%.

Mortgage origination volume at Chase rose 12.4% from the third to the fourth quarter, according to earnings results released Tuesday.