RMBS

A pool of high-quality mortgages is securing Flagstar 2021-7. None of the loans had been subject to a coronavirus-related forbearance plan by the cutoff date.

Expanded prime and non-prime mortgages underpin the pool in the deal, issuing $459.8 million in notes.

Market conditions suggest that the SFR has positive forward momentum, with a healthy stream of deals in the securitization pipeline through the end of 2021.

The self-employed professionals posted slightly weaker credit fundamentals, as they were more severely affected by the pandemic due to business closures.

The underlying loans in CSMC 2021-NQM4 have a 738 weighted average model FICO score, relatively low leverage, and a sustainable loan-to-value ratio of 75.2%.

So far companies plan on using roughly the same number of employees as they shift from handling payment suspensions to assessing borrowers who have seen long-term declines in their incomes.

Progressive floats notes collateralized by single-family rentals, while GS Mortgage-Backed Securities Trust is secured by prime-jumbo and agency conforming loans.

It’s become nearly impossible to find yield amid the ongoing spread compression across credit markets. One of the last harbors for value, securitized debt, still offers upside in some specific areas, though returns are quickly diminishing.

With little transitional disruption, the bigger players on the non-agency side could gain a hefty share of non-owner-occupied mortgage volume as a result of Fannie Mae and Freddie Mac’s caps on such purchases, a KBRA analysis finds.

The deal was constructed under Angel Oak’s social-bond framework, in which the firm intends to use the proceeds to help finance residential loans for underserved borrowers.