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The SEMT 2026-S1 loan count is slightly larger, compared with 671 loans in the SEMT 2025-S2, but they have a lower average loan balance, which seems to track with borrowers' lower median income.
Fitch Ratings, noting the reduction in Wells Fargo's balances and sale of non-agency servicing, said the bank no longer meets expectations at its old grade.
GDLP 2026-2 also has lower levels of initial credit enhancement compared to GDLP 2026-1, at 6.12% versus 5.74%; overcollateralization at 23.90% versus 24.92% and total gross excess spread of 5.55% versus 5.98%.
More depositories are getting involved in the securitized market and the competition is likely to add to expense management challenges of smaller balance loans.
Two online ads promise Fannie Mae and Freddie Mac are working to boost purchase applications but it's unclear whether they signal interest in a stock offering.
