The change in course was fueled by mounting pressure from industry participants and members of Congress, among other stakeholders.

Esoteric ABS provide stronger yields than traditional ABS. In exchange, investors face greater liquidity risk and some unknowns on future performance.

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.

New guidance from the Financial Stability Oversight Council makes it easier for FSOC to increase regulatory requirements for large nonbank financial companies. The move doesn’t sit well with the mortgage industry.

The average credit scores for new originations of FHA mortgages declined somewhat after BofA and JPMorgan Chase ceased correspondent aggregation in the market.

FHFA left it up to Congress to decide whether nonbanks should be provided access to Federal Home Loan Bank advances.

Both FHA and VA volume in Ginnie MBS issuance declined on a monthly basis in October.

Demand for mortgages from banks declined in the third quarter and many banks further tightened underwriting.

Issuance of Ginnie MBS declined by 8.6% on a monthly basis in October. FHA and VA volume declined at similar rates while purchase-mortgage activity held up better than refinances. (Includes two data tables.)

Large bank correspondent aggregators of FHA mortgages looked to firm guidelines on credit scores and LTV ratios while Fed researchers found that smaller nonbank lenders were willing to go down in credit and loan performance didn’t suffer.