MBS & ABS Performance
Browse articles from all of our Newsletters related to MBS & ABS Performance.
July 18, 2014 - Inside FHA Lending
Ginnie Mae would play a greater role in a private-market partnership model envisioned in proposed housing finance reform legislation introduced recently by House Democrats. However, many in the industry doubt whether a Democrat-sponsored reform bill will pass in this Congress. Sponsored by Reps. John Delaney (MD), John Carney (DE) and Jim Himes (CT), the Partnership to Strengthen Homeownership Act would put Ginnie Mae in charge of all single- and multifamily mortgage-backed securities with government backing. Among other things, H.R. 5055 would create a new Ginnie Mae MBS for conventional mortgages backed by the full faith and credit of the federal government with minimum support from the private sector. Under the proposed model, private entities would assume up to 5 percent of the first-loss capital on the MBS. The remaining 95 percent would be shared between ...
July 11, 2014 - Inside MBS & ABS
Fitch Ratings has consolidated a number of key rating drivers into updated master rating criteria for residential MBS backed by newly originated and seasoned residential mortgages. The latest report replaces the July 2013 RMBS criteria, and while no material changes have been made to the overarching process, a few tweaks have been made. The important rating drivers that were incorporated include...
July 11, 2014 - Inside MBS & ABS
Redwood Trust took three months off from issuing jumbo MBS but came back with something of a doozy this week: a $306.05 million deal that will include some loans that dont meet standards for qualified mortgages and some loans that werent subject to third-party due diligence reviews. Sequoia Mortgage Trust 2014-2 is set to receive AAA ratings with credit enhancement of 7.57 percent on the top-rated tranche. While the credit enhancement requirements are somewhat high, a jumbo MBS from Redwood in November had even higher credit enhancement levels, suggesting that the non-QMs and lack of full due diligence arent a major concern. Only three of the 438 mortgages to be included in the deal are...
July 3, 2014 - Inside Nonconforming Markets
The new lenders contributing to jumbo mortgage-backed securities could pose risks to investors in the deals, according to Standard & Poors. The rating service said that due diligence and strong underwriting standards currently mitigate the risks, but there are concerns that the lenders with limited track records wont be able to fulfill representation-and-warranty repurchase obligations. Jumbo MBS have seen contributions from a mix of lenders. The main contributors ...
June 27, 2014 - Inside MBS & ABS
The Securities and Exchange Commission has largely wrapped up its enforcement on structured finance issues related to the financial crisis, according to current and former officials at the federal regulator. The SECs Complex Financial Instruments Unit is now focusing on more recent issues in the structured finance sector. The unit has now shifted its attention to the next frontier, and I expect it to zero in on the structuring, rating, valuation, sale, and use of other types of complex financial products, such as commercial MBS, structured notes and credit default swaps, Andrew Ceresney, the director of the SECs division of enforcement, said in May. Stephen Crimmins, a partner at the law firm of K&L Gates who previously worked at the SEC for 14 years, said...
June 20, 2014 - Inside MBS & ABS
Morningstar Credit Ratings late last week published new rating criteria for non-agency MBS. While the firm has been active in the commercial MBS sector, the non-agency MBS rating criteria Morningstar released in 2012 never caught on with issuers. We have taken a fresh, holistic approach to the residential MBS rating process to help investors gauge the relative default risk of a security against its peers, said Vickie Tillman, president of Morningstar. Tillman joined the rating service in August after more than 30 years at Standard & Poors. Morningstar said...
June 12, 2014 - Inside MBS & ABS
The volume of outstanding commercial MBS continues to hit record highs and the number of active lenders is near levels seen before the financial crisis. While issuers suggest that the industry is much different than in 2007, there are concerns about looser underwriting. Some $86.48 billion in commercial MBS was issued in 2013, according to the Inside Mortgage Finance MBS Database. And while issuance in the first quarter of 2014 was lower than three of the four quarters in 2013, Standard & Poors projected this week that issuance of commercial MBS could hit $90.0 billion this year. The issuance has been prompted...
June 12, 2014 - Inside MBS & ABS
The International Organization of Securities Commissions is working on a set of good practices to provide to the vast majority of the worlds securities regulators as part of an effort to prompt securities investors to reduce their reliance on credit ratings. While participants in the U.S. structured finance industry suggest that reliance on credit ratings diminished after the financial crisis, many funds continue to have guidelines that reference credit ratings. Some investors, for example, couldnt buy into risk-sharing transactions from the government-sponsored enterprises unless the deals received investment-grade ratings. IOSCO recently issued...
- GSE Seller Profile: 2Q14
- Top Mortgage Players: 1Q14
- Agency Condo Market: 2013
- Mortgage Profitability Report: 4Q13
- GSE Private Mortgage Insurance Profile 1Q14
- GSE Repurchase Activity Full Year 2013
- Servicing Strategies and MSRs
- Non-Qualified Mortgages
- CFPB Exam and Enforcement
- Mortgage Buybacks Guide 2014
- Mortgage Originations Channels
- CFPB Mortgage Disclosure Requirements
- Qualified Residential Mortgages and Risk Retention
- CFPB's LO Comp Rule
- Ability-to-Repay Rule and Qualified Mortgages
- Fair Lending Compliance
- CFPB Regulation of Mortgage Servicing
Most Popular Stories
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- Short Takes: Will CIT be a Player in Mortgages? / Another New CEO for Union Mortgage / Credit Suisse Buying NPLs from Astoria / JPM Gets Some Credit / IMA in Market with $1B of MSRs