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PLS market struggling to clear backlog of loans locked at last year’s rates

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The rate volatility created by fast-rising inflation, now approaching 8% annualized, and the opposing flight to quality sparked by the war in Ukraine, is complicating an already challenging execution environment in the private-label securities market. 

Into March of this year, according to multiple market experts, the nonagency secondary market has been digesting a large backlog of mortgage collateral that was locked and originated last year during a much lower-rate environment than exists today. Most of the mortgages securitized in January and February and into March of this year, according to those observers, were originated details ⇒

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