MBS & ABS Performance
Browse articles from all of our Newsletters related to MBS & ABS Performance.
March 7, 2014 - Inside MBS & ABS
Credit Suisse late last week issued its second jumbo MBS of the year, both of which have largely consisted of mortgages from New Penn Financial. Redwood Trust is also planning to issue its first jumbo MBS of the year in the coming weeks, though officials at the real estate investment trust are pessimistic about the short-term outlook for jumbo MBS issuance. Credit Suisses latest jumbo MBS was a $297.4 million deal with ratings from DBRS and Standard & Poors. The AAA tranche had credit enhancement of 8.85 percent and no presale reports on the deal were published. Officials at Redwood have cited...
February 28, 2014 - Inside MBS & ABS
Kara Stein, a commissioner at the Securities and Exchange Commission, said the SEC needs to take action regarding the rating services. It was one of many recent MBS-related calls for action directed at the SEC, from the agency's leadership, Congress and industry analysts. "We need to finally and firmly address the conflicts of interest in asset-backed securitizations and the provision of credit ratings," Stein said in a speech late last week. She noted...
February 21, 2014 - Inside MBS & ABS
The private student-loan sector continues to slowly improve, but defaults and delinquencies are still at elevated levels compared to the period before the financial crisis, according to a new report by analysts at DBRS, based on data from deals that closed between 2002 and 2007. Quarterly gross defaults, as measured as a percentage of loans in repayment, slipped from 1.07 percent in the third quarter of 2013 to 1.00 percent in the fourth quarter. Similarly, the percentage of gross defaults as a percentage of the original pool balance declined from 0.55 percent to 0.50 percent. Defaults have remained...
February 21, 2014 - Inside MBS & ABS
The capital markets risk-sharing transactions completed by Fannie Mae and Freddie Mac in the past year are seen by some as a model for reform of the government-sponsored enterprises. However, the GSEs are taking on significantly more risk in the transactions than the non-agency first-loss requirements contemplated in legislation pending in Congress. Analysts at Barclays Capital project that after Congress approves mortgage-finance reform legislation, it would take at least 10 years to transition smoothly to a new system. Bills in Congress contemplate a five-year transition timeline, but raising enough private capital to fund the new system in that timeframe could be difficult. Industry analysts predict...
February 14, 2014 - Inside MBS & ABS
Issuance of agency and non-agency commercial MBS increased 13.5 percent in 2013, according to a new analysis by Inside MBS & ABS, although production dropped sharply in the fourth quarter. Industry participants expect that volume will continue to grow as investor demand for commercial MBS remains strong despite some loosening of underwriting standards. Ken Cheng, a managing director at Morningstar Credit Ratings, said...[Includes one data chart]
January 31, 2014 - Inside FHA Lending
Ginnie Mae is considering lengthening the approval time for transfers of mortgage servicing rights (MSRs) to 90 days or more from the current 30 days but has yet to issue guidance. The agency alerted sellers of MSRs and their investment banking advisors of the forthcoming change in late November at an education summit in Washington, according to a participant, who preferred anonymity. New and existing issuers participated in the event, and a copy of Ginnie Maes presentation was provided to Inside Mortgage Finance, an affiliated publication. Ginnie Mae declined to comment on the report. However, according to the presentation, the reason for ...
January 31, 2014 - Inside Nonconforming Markets
Mortgages included in new non-agency mortgage-backed securities that fall outside of the safe harbor for qualified mortgages will be assigned higher loss expectations, according to criteria released last week by Standard & Poors. Other rating services have released similar criteria, with credit-enhancement requirements expected to be higher for non-agency MBS that include loans other than safe harbor QMs. The Consumer Financial Protection Bureaus ability-to-repay rule established a number of ...
January 24, 2014 - Inside The GSEs
Fannie Mae and Freddie Mac should revise their seller/servicer guidelines to allow use of credit scores from more than one provider in order to foster competition, according to a bipartisan quartet of House Financial Services Committee members. In a letter sent to Federal Housing Finance Agency Director Mel Watt, Reps. Ed Royce, R-CA; Spencer Bachus, R-AL; James Himes, D-CT; and Carolyn Maloney, D-NY, said that the GSEs should not be restricted to relying on credit scores provided solely by the Fair Isaac Corp.
- GSE Seller Profile: 4Q13
- Top Mortgage Players: 3Q13
- GSE Repurchase Activity First Half 2013
- Mortgage Profitability Report: 3Q13
- GSE Market Profile: FY12
- GSE Private Mortgage Insurance Profile
What is your mortgage servicing rights strategy for the year?
- We plan to originate and keep all of our MSRs.
- We sell all our MSRs "servicing released" for cash right away.
- We have a strategy of selling some of our MSRs, but only when we need to.
- None of these describes our 2014 strategy.
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