The difference between interest rates on non-QMs in MBS and the interest rate paid to investors in the securities is helping to protect investors from losses. Excess spread in the sector increased as seasoned loans were repackaged.

The CFPB and the FHFA are no longer quasi-independent agencies insulated from the whims of the White House.

Some 22% of the loans in the MBS were originated by lenders unaffiliated with Angel Oak Companies.

The SFVegas conference typically takes place in February, though the 2021 edition was postponed a few times due to the pandemic.

To help produce the record volume of mortgages originated in 2020, lenders embraced technology. Changes that could have taken five years to implement were completed in 18 months.

Chopra’s installation at the CFPB is expected to jumpstart rulemaking and enforcement efforts by the regulator. At his confirmation hearing in March, Chopra said his priorities include scrutiny of how mortgage servicers work with distressed borrowers.

A handful of MBS and ABS have incorporated blockchain in a limited fashion. Proponents of the technology suggest that it will improve efficiencies and decrease costs.

Changes to underwriting standards and home price appreciation helped investors in non-agency MBS largely avoid losses during the pandemic. By comparison, cumulative losses on subprime MBS during the financial crisis of 2008 hit nearly 20%.

Although only $4.5 billion of TALF funding was requested during the facility’s pandemic-related course, the Federal Reserve program is credited with stabilizing the ABS market.

Issuers are still stocking non-agency MBS with GSE-eligible mortgages for investment properties. Lenders and issuers are considering their options following a suspension of limitations placed on the GSEs.