Mortgage borrowers' obligations for property taxes and insurance are rising and interest rates are projected to fall, a foreboding combination for MSR investors.

Effective immediately, Ginnie issuers must notify the agency of any cybersecurity incident within 48 hours after the issue is detected.

Annaly is a prolific issuer in the sector, but the only other time the real estate investment trust’s expanded-credit deals topped $500 million in volume was during the refinance boom during the pandemic.

Servicers retained only about 20% of borrowers that refinanced their mortgages during the fourth quarter of 2023.

“We’re in a euphoric market for spread products,” said Neil Aggarwal, head of securitized products at Reams Asset Management.

NYCB’s fourth-quarter results went from a $252 million net loss as reported Jan. 31 to a $2.71 billion loss.

“The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying,” said Sam Khater, chief economist at Freddie Mac.

Attendance at the SFVegas conference this year hit another record. Demand for MBS and ABS is exceptionally strong, with few concerns on the immediate horizon.

New prohibitions against conflicts of interest in the MBS and ABS market will take effect in June 2025. But SEC officials are urging industry participants to raise compliance concerns, if any, as soon as possible.

Nonbanks are under increased pressure as borrowers face skyrocketing obligations on taxes and insurance. Concurrently, there’s a risk that interest rates will decline, cutting into MSR values.