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Securitizations backed by jumbo loans and mortgages on residential investment properties have propelled a rebounding private-label market in 2021.

That gravy train, however, is expected to slow down some as we turn the corner into 2022 — with rising interest rates, spiking home prices and the expanding reach of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac serving as the brakes.

Still, the balance of the year looks promising for the private-label market, according to MAXEX. Loans traded through the Atlanta-based digital mortgage exchange have been included in 100 private-label securitization transactions since its launch in 2016, the company reports.

MAXEX lays out its market prognostications in a recently released report covering private-label securitization activity for the month of October. And the elephant in the room is interest rates.

“We do expect the PLMBS [private-label mortgage-backed securities] market will downshift slightly as supply wanes while interest rates rise, creating a more competitive marketplace,” the MAXEX report states.