© 2026 Arizent. All rights reserved.
For reprint and licensing requests for this article, click here.
The home equity agreements provider faced a week of the 10-year Treasury almost breaking through 5.35%, and a period of peaking mortgage rates.
Smaller and largely unrated non-investment grade entities compose the assets, but the historical managed portfolio and securitized delinquencies and losses remain low, even during recessions.
A stop advance applies to first-lien loans that are delinquent by 180 days or more, while a stop advance requirement applies to second-lien loans that are delinquent by 60 days or more.
Zillow now predicts mortgage rates to end 2026 over 7%.
The deal's obligor concentrations—its top and top five obligors account for 9.45% and 37.95% of the pool—are reigned in by WEF's focus on mission-critical essential use equipment.
