MBS and ABS tied to floating-rate assets could see rising delinquencies as interest rates increase. Inflation also remains a concern, though Fitch and Moody’s suggest that most deals can weather the storm.

The Fed revealed this week that any sales from its agency MBS portfolio will be telegraphed well in advance. Still, rates continue to rise.

Fact: If you sell a 2.5% Fannie Mae/Freddie Mac coupon into a 3.5% UMBS market, you will lose money. A lot of it.

With home-equity lending suppressed due to tight underwriting standards, nonbanks are finding some success in equity-sharing agreements. The risk: The products may be classified as loans.

Pretium's new $1.7 billion fund for residential credit investments is nearly double the size of the firm's previous fund.

The top three ARM originators of 2021: Bank of America, Chase and Wells Fargo...

One notable trend: widening spreads that showed no letup...

The firm added, “We understand the change caused confusion and stress for you and your borrowers and for that we apologize.”

Issuance of expanded-credit MBS increased by nearly 40% on a sequential basis in the first quarter while prime non-agency MBS issuance was down 16%. Issuers faced higher interest rates and diminished demand from investors. (Includes data chart.)

The conduit started acquiring mortgages in mid-2021, with a focus on a limited number of lenders and relatively conservative credit standards.