The Economics of New Non-Agency MBS
January 31, 2012
This week’s issue of Inside Nonconforming Markets will include a look at the economics of the issuance of new non-agency mortgage-backed securities. Attendees at the American Securitization Forum’s annual conference last week in Las Vegas suggested that non-agency MBS issuance will resume in a substantial manner only when the funding mechanism makes economic sense for big banks. Reginald Imamura, an executive vice president at PNC, said there is “overwhelming uncertainty” regarding the outlook for non-agency securitization.
Agency and portfolio execution currently remain better options for potential non-agency MBS issuers – due to investor demands and regulatory uncertainty, among other factors. “You’re going to see transactions that would have been securitizations held on bank portfolios,” said Scott Buchta, head of mortgage strategy at Sandler O’Neill & Partners, a financial services advisory firm.
Other stories slated for publication in the newsletter this week include:
- Reaction to the non-agency MBS issued last week by Redwood Trust
- The latest performance metrics from the non-agency Public-Private Investment Program
- Details on the expansion and extension of the Home Affordable Modification Program
- The prospects for the non-agency refi program proposed by President Obama
- Details on the new team of regulators investigating the pooling and sale of non-agency MBS
Other areas of interest
- Trends & Profitability
- Refinance Programs
- Jumbo Mortgages
- Jumbo Trends
- Nonconforming Activity
- Nonconforming
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