Wells Fargo Returns to PLS Market

According to a recent article in Reuters, Wells Fargo & Co. plans to issue private-label mortgage-backed securities (PLS) for the first time since 2008. At the height of the market, more than $1 trillion worth of mortgages were packaged into MBS in both 2005 and 2006. PLS issuance has totaled less than $60 billion since 2009.

The article reports that during an investor presentation earlier this year, Franklin Codel, head of Wells Fargo's consumer lending division, stated that "this year one of our aspirations is to come back to the market with a couple of deals and we're taking a look at making sure we can structure those properly ... to try to test the market and see what we can do there to help bring confidence back."

SFIG continues to work diligently through a variety of channels to advocate for a return to a historically normal balance in the funding mix of the U.S. housing market, between government-sponsored MBS issuance (including CRT), bank portfolio lending, and private-label MBS issuance. If you would like to learn more about these efforts, please email Dallin.Merrill@sfindustry.org.

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