Losses on non-agency MBS, a rarity for deals issued since 2010, look likely as forbearance plans for distressed borrowers end. Investors in the senior tranches appear to be safe for now.
Issuance of expanded-credit MBS was expected to remain suppressed after volatility in March halted activity. After a strong second quarter, industry analysts revised their projections.
The top three jumbo originators in 2Q20 were all megabanks: Wells Fargo, Bank of America and JPMorgan Chase. The only nonbank among the top-10: Quicken...