An SEC committee hosted a panel discussion in November regarding the compensation model for rating services. The regulator hasn't made a decision on whether reforms are needed to the issuer-pays model.

FSOC continues to focus on the risk posed by nonbanks, which are key players in the MBS market. But is the regulator worrying too much? Opinions differ.

Delinquencies continued to decline in the third quarter, helped by a strong employment market and economic growth. However, there are some signs that late payments might inch upwards. (Includes data chart.)

The SFA is eyeing changes to its due diligence review standards. Meanwhile, REITs are awash in cash like never before.

According to data from state regulators, the largest nonbanks in the mortgage space have approximately four times as much debt as equity.

Since 2006, only one rated whole business securitization has defaulted. Investors in the deals are protected by various features, including a model that isn't particularly reliant on issuer profits.

In a recent report, Fitch Ratings noted that shortfalls can occur when a mortgage is prepaid before the end of the month, causing only a partial collection of the interest owed by the borrower...

Shea Pallante, executive vice president of Sprout Mortgage, called the non-QM market a “sleeping giant.”

Investors in some prime non-agency MBS are taking losses even though loans in the deals are performing well. The red ink is tied to variable servicing fees and high prepayment rates.

The non-QM market has seen strong growth since it started in 2014 though the sector still accounts for less than 5% of total residential originations.