Fitch Ratings proposed changes to its rating criteria for non-agency MBS. If implemented, 10% of outstanding residential MBS ratings by Fitch will be upgraded.

In a rare move for a bank, the majority of Royal Business Bank’s mortgages are non-QMs. The bank is headquartered in Los Angeles and operates across six states.

The share of GSE purchase mortgages with credit scores of at least 740 increased from 73.8% in the first quarter of 2025 to 74.6% in the second quarter. A similar trend was seen in GSE refi business. (Includes two data tables.)

While impairments on securitized debt service coverage ratio loans have increased, losses have been minimal.

Refi business moved toward lower LTV ratios and lower credit scores in the first quarter. Characteristics for purchase mortgages held steady compared with the fourth quarter of 2024. (Includes two data tables.)

Mortgage loan deliveries to Fannie Mae and Freddie Mac were up 6.9% in 2024, driven mainly by higher volumes from New England and upper Midwest states. (Includes data table.)

New research shows that, contrary to some critics, debt-to-income ratios are an effective predictor of a borrower’s ability to repay.

Purchase mortgages continued to dominate deliveries to the GSEs in the second quarter and the share of purchase mortgages with credit scores of 740 or above increased compared with the first quarter. (Includes two data tables.)

Researchers say strategic securitization by lenders exposes the GSEs to higher insurer counterparty risk, especially in regions with frequent climate-related disasters. The proposed cure: LLPAs and capital rules that compensate the GSEs for this risk.

If Freddie Mac is allowed to purchase second mortgages, critics argue there should be clearly articulated capital requirements, loan-to-value ratio limits and debt-to-income ratio restrictions.