Credit Ratings

Browse articles from all of our Newsletters related to Credit Ratings.

January 6, 2017 - Inside FHA/VA Lending

Ginnie MBS Program Set New Records in 2016, VA Soared

Ginnie Mae guaranteed a total of $507.46 billion of single-family mortgage-backed securities in 2016, its biggest annual volume ever, according to a new analysis and ranking by Inside FHA/VA Lending. That was up 16.4 percent from the agency’s previous record of $435.80 billion set in 2015. (Those figures include MBS backed by FHA home-equity conversion mortgages, which are not included in the table below or in the rankings on pages 3-5.) In 2016, Ginnie guaranteed $497.03 billion of MBS backed by traditional forward mortgages, also a record, which was up 16.9 percent from the previous year. The biggest factor in last year’s record-setting production was the boom in VA lending, particularly VA refinance loans. Issuers securitized a record $203.03 billion of VA loans last year, up 33.0 percent from the 2015 total. Some 54.3 percent of those loans were refinance transactions. Total VA refi loan ... [4 charts]

January 6, 2017 - Inside MBS & ABS

Deutsche Bank and Credit Suisse Agree to Separate Settlements of RMBS Complaints; DOJ Sues Barclays

Two Wall Street banks have agreed to separate settlements with the Department of Justice to resolve civil claims related to their issuance and underwriting of nonprime residential MBS leading up to the financial crisis. Under the terms of the settlements, Credit Suisse and Deutsche Bank have agreed to pay the DOJ $2.48 billion and $3.1 billion, respectively, related to the securitization, underwriting and issuance of residential MBS prior to 2008. In addition, Credit Suisse ($2.8 billion) and Deutsche Bank ($4.1 billion) will provide...

January 6, 2017 - Inside MBS & ABS

Precious-Metals Dealer Issues $100 Million ABS Backed by Loans Secured by Coins and Bullion

Monex Deposit Company issued a $100.0 million ABS backed by loans on silver and other coins in late December, according to Morningstar Credit Ratings. The deal received a AA rating, with the rating service noting concerns about the volatility of silver prices and regulatory issues. MDC is a precious-metals dealer established in 1987 whose predecessor dates back to 1967. Scala Funding Company 2016-1 consists of 1,854 accounts with an average balance of $51,760. The loans backing the ABS are offered...

December 16, 2016 - Inside Nonconforming Markets

Nonprime MBS from Lone Star Sets Precedents

A new nonprime MBS from an affiliate of Lone Star Funds has two significant distinctions: it’s the first post-crisis nonprime MBS backed by new originations to receive a AAA rating and it’s the largest post-crisis nonprime MBS backed by new originations. COLT 2016-3 Mortgage Loan Trust received AAA ratings from DBRS and Fitch Ratings. “Over the past year, Fitch has become more comfortable with the operational risk of the issuer through extensive due diligence results, multiple ...

December 2, 2016 - Inside FHA/VA Lending

FHA, VA Deliveries to Ginnie Mae Increase During First Nine Months

Total FHA and VA originations increased during the first nine months of 2016 compared to the same period last year, although VA was more active, posting a double-digit production increase, according to an analysis of Ginnie Mae data. Lenders delivered $201.0 billion of FHA loans to Ginnie single-family mortgage pools over the last three quarters, up 4.8 percent from the previous year. Approximately 65.4 percent and 29.3 percent of FHA loans securitized were purchase loans and refinances, respectively. The remainder was loan modifications. VA originations totaled $143.2 billion over the same period, up 22.3 percent from last year. Refinances accounted for 51.9 percent of volume and purchase loans comprised 47.0 percent. The share of FHA loans in agency mortgage-backed securities for the nine-month period was 19.5 percent and 13.9 percent for VA. FHA loans accounted for ...


HUD has announced a 25 basis point cut in FHA premiums, which is slated to take effect in late January. Is your lending shop for or against a cut in FHA premiums?

For. It should help lending volumes.
Against. The private MI sector should take on this risk, not the government.
Too early to say.
I believe the new White House may scuttle the idea so it doesn’t matter.

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