Securities

Browse articles from all of our Newsletters related to Securities.

January 13, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


January 13, 2017 - Inside MBS & ABS

Multiple ABS Sectors Expected to Turn in Stable Performances This Year, Analysts Say

With financial markets awaiting, with some uncertainty, the public policy positions of the incoming Trump administration and the new Congress, industry analysts say ABS investors can expect most sectors to turn in stable performances in 2017. “As we look back on 2016 and consider the 2017 global structured finance outlook, most markets and their credit conditions seem favorable, and in some cases, even ideal. However, 2017 has many unknowns, especially the specific policies and priorities that will be adopted by the new U.S. administration,” said analysts with S&P Global Ratings in a recent outlook report. “Some would suggest government-sponsored enterprise privatization is possible, risk retention could be revised, and an appropriate/globally consistent capital treatment for structured finance products could be approved.” Further, “For the most part, we expect...


January 13, 2017 - Inside MBS & ABS

Basel Capital Requirements’ Impact on Non-Agency MBS Activities Uncertain, According to GAO

Capital requirements regarding bank holdings of non-agency MBS increased significantly after federal regulators implemented Basel III reforms in 2014. And while banks have largely been reluctant to re-enter the market for non-agency MBS issuance, a recent report by the Government Accountability Office suggests that the impact of bank involvement in the non-agency MBS market is unclear. The GAO was asked to explain how capital requirements for a mortgage depend on how the loan is financed and how the requirements have changed since the financial crisis. The report was requested by Sen. Richard Shelby, R-AL, who until recently was the chairman of the Senate Committee on Banking, Housing and Urban Affairs. The GAO noted...


January 13, 2017 - Inside MBS & ABS

The Outlook for GSE Reform Brightens, But When and How is a Different Story

Change in the political balance in Washington that put the GOP in control of both houses of Congress and the executive branch has fueled speculation that something will finally be done to resolve the conservatorships of Fannie Mae and Freddie Mac. As in the past, there is no shortage of competing proposals. At an Urban Institute seminar this week, Rick Lazio, former Republican congressman from New York, said...


January 13, 2017 - Inside MBS & ABS

Blackstone Files IPO Documents on Invitation Homes, a Pioneer in SFR Securitizations; But IH Is Losing Money

The Blackstone Group this month filed its long awaited initial public offering document on its Invitation Homes unit, a pioneer in single-family rentals and securitization of these assets. The 1,300 page Form S-11 is chock full of financial details on the real estate investment trust, including the revelation that the company continues to lose money. Through the first nine months of 2016 – the latest available data – Invitation Homes posted a net loss of $51.6 million compared to a $121.7 million loss in the same period a year earlier. The numbers and commentary in the filing indicate...


January 13, 2017 - Inside MBS & ABS

Judge OKs BofA Settlement; SEC to Resubmit Payout Plan; Court Affirms Dismissal of Repurchase Claims

Judge William Pauley of the U.S. District Court for the Southern District of New York has approved a $335 million settlement by Bank of America with three pension funds and other investors to resolve a securities class-action against the bank. The settlement is one of the largest class-action settlements of securities-purchase claims arising from the financial crisis, according to the Pennsylvania Public School Employees’ Retirement System (PSERS), the court appointed lead plaintiff in the six-year old case. Other investors include...


January 13, 2017 - Inside MBS & ABS

FHA’s New Pricing Adjustment Could Boost Ginnie Mae Issuance, Trigger Prepayments on Premium MBS

The 25 basis-point mortgage insurance premium cut announced this week by the Department of Housing and Urban Development’s departing leadership could switch $50 billion of issuance from Fannie Mae/Freddie Mac business to FHA as well as cause premium Ginnie Mae MBS to prepay faster, according to market analysts. Absent any adversarial pricing by private mortgage insurers, a guaranty fee adjustment by the Federal Housing Finance Agency or a reversal by the Trump administration, analysts with Bank of America Merrill Lynch see up to 12 percent of purchase and 2 percent of refis shifting to FHA. On June 9, HUD Secretary Julian Castro announced...


January 13, 2017 - Inside MBS & ABS

Fourth-Quarter Slump in New GSE Credit-Risk Transfers Leaves 2016 With Small Increase from Previous Year

Fannie Mae and Freddie Mac last year issued a combined $12.93 billion of debt notes that pay investors based on the performance of reference pools, according to a new Inside MBS & ABS analysis of their credit-risk transfer programs. That was up just 2.8 percent from the 2015 volume of new issuance in Fannie’s Connecticut Avenue Securities program and Freddie’s Structured Agency Credit Risk program. It brought total issuance in the two platforms, which started issuance in late 2013, to $38.08 billion. Interestingly, total new single-family MBS production by the two government-sponsored enterprises was...[Includes one data table]


January 13, 2017 - Inside MBS & ABS

Non-Agency MBS Production Tumbled Sharply In 2016; Nonprime Sector Showed Some Life

In 2016, a mere $42.93 billion of non-agency MBS were issued, down 32.5 percent from the previous year, according to a new Inside MBS & ABS ranking and analysis. It was the second-lowest annual output since 2012. The picture would look a bit brighter if Fannie Mae and Freddie Mac credit-risk transfer deals were included, as well as single-family rental securitizations, which both compete for the investors that might be interested in non-agency MBS. But the government-sponsored enterprise CRT deals are debt issues and they couldn’t be any more “agency,” while the SFR securitizations look a lot more like commercial MBS than residential MBS. The prime jumbo market hit...[Includes three data tables]


January 13, 2017 - IMFnews

What We’re Hearing: Reading the Wells Fargo (Origination) Tea Leaves / Nonbanks Rule? / MSR Mark-up Mania / CA-Based Nonbank Plans to Hire 1,000 LOs? / The First To Go: Operations Staff / Cordray is Going to be Fired. No Duh

It’s been no secret in Washington financial circles that shortly after Donald Trump was elected president, the decision was made by his “team” to fire CFPB director Richard Cordray...


January 13, 2017 - IMFnews

The Final Tally: Non-Agency MBS Production Tumbled Sharply in 2016

Oddly enough, the nonprime space showed some signs of life last year and hopes are high for 2017 as well…


January 12, 2017 - IMFnews

Short Takes: HUD Nominee Carson Says he will ‘Review ‘the MIP Cut / Why Banks Avoid the FHA Program / HUD’s Budget: $45 Billion / Investor Cuts Stake in Annaly / CPR&T Downgrades Ocwen

CPR&T predicted that the asset value of Ocwen’s mortgage servicing portfolio likely won’t benefit much from the recent spike in interest rates…


January 12, 2017 - IMFnews

RE/MAX’s Motto Mortgage Offering Franchise Opportunities in Most States

According to exclusive survey figures from Inside Mortgage Finance, the wholesale/broker market share increased to 10.2 percent in the third quarter, its highest reading of the year.


January 11, 2017 - IMFnews

On the Horizon: More Non-Agency/Non-Prime MBS Deals

In 2016, Caliber issued three non-agency MBS deals that included prime-quality and jumbo loans, often made to borrowers described in ratings’ reports as consumers with “unblemished” credit.


January 11, 2017 - IMFnews

Zeus Offers Crowdfunding for Hard-Money RE Loans. Four-Day Funding?

In addition to crowdfunded hard-money loans, Zeus offers traditional forward and reverse mortgages.


January 10, 2017 - IMFnews

The Final Tally: Ginnie Mae MBS Issuance Hit a Record High in 2016; VA Soared

FHA collateral still accounted for over half of Ginnie issuance, but the 2016 total was up a more subdued 8.2 percent from the previous year…


January 9, 2017 - IMFnews

In Limbo: the ‘Prime’ Non-Agency MBS Market

Some $1.57 billion in prime non-agency MBS were issued in the fourth quarter, down 61.3 percent…


January 9, 2017 - IMFnews

Tozer on Ginnie Mae MBS Demand: ‘I Wish I Could Make More’ [Securities]

Presently, Japan is the volume leader in Ginnie ownership at roughly $204 billion…


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

MBS & ABS Issuance at a Glance

One page of issuance data.


January 6, 2017 - Inside MBS & ABS

Auto ABS Could Suffer Some Dents This Year, But Credit Card ABS Performance Should be Stable

With structured finance performance having peaked for many sectors, analysts at Fitch Rating and S&P Global Ratings anticipate some modest asset-level deterioration in 2017 – most notably in both prime and subprime auto ABS. On the other hand, they expect relatively stable performance from credit card ABS. “Both prime and subprime auto ABS loss rates could be...


January 6, 2017 - Inside MBS & ABS

Treasury Officials Favor Explicit Government MBS Guarantee and Credit Access in all Economic Cycles

The only word from the incoming Trump administration about the fate of Fannie Mae and Freddie Mac is that the prospective Treasury secretary wants to bring them out of conservatorship. The Obama administration, however, commits only to preserving an explicit government guarantee for a “defined class” of MBS. “The explicit government guarantee would be funded by financial institutions and would act as insurance against catastrophic losses,” said the Treasury in a late December blog posting by Jane Dokko, deputy assistant secretary for financial economics, and Sam Valverde, a counselor in the Office of Domestic Finance. However, the authors don’t elaborate on what would shape the defined class. Under the new guarantee, investors would be assured...


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

With So Many Foreign Investors Owning Ginnie MBS, Who Becomes President of the Agency is Paramount

The incoming Trump administration has yet to pick a new president for Ginnie Mae, but foreign investors will be keeping a close eye on the selection for the simple reason they own a ton of the agency’s MBS. According to Sept. 30 figures provided to Inside MBS & ABS, foreign investment in Ginnie MBS is now at a record $552 billion, or roughly 35 percent of all outstanding securities. The agency could not 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...


January 6, 2017 - Inside MBS & ABS

Freddie Mac Issues Its First Risk-Sharing Security Backed by Seasoned Mortgages

In late December, Freddie Mac issued a $934.27 million security backed by seasoned mortgages. It was the first seasoned credit-risk transfer from the government-sponsored enterprise. While Freddie has issued fully guaranteed securitizations backed by seasoned mortgages, Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2016-1 included tranches without a guarantee from the GSE, similar to a non-agency senior-sub MBS. The transaction included...


January 6, 2017 - Inside MBS & ABS

Angel Oak Gears Up for New Non-Agency MBS, While PIMCO and Citadel May Tap the Market Later in 2017

With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...


January 6, 2017 - Inside MBS & ABS

Heavy Agency MBS Production Lifted Total Asset Securitization to 3-Year High in 2016

Another record year for Ginnie Mae MBS issuance plus strong volume in the Fannie Mae and Freddie Mac programs helped push total securitization of residential mortgages and non-mortgage ABS to a three-year high of $1.698 trillion in 2016. A new Inside MBS & ABS analysis shows that total MBS and ABS issuance – not including commercial MBS – was up 13.3 percent from 2015. Agency production of single-family MBS totaled $1.481 trillion in 2016, up 17.5 percent from the previous year. Over a third of that came from Ginnie, which set a new annual record with $507.5 billion in single-family MBS issuance. The non-agency MBS market was...[Includes three data tables]


January 6, 2017 - IMFnews

Redwood Trust Readies First Jumbo MBS of the New Year

It looks like Redwood Trust will be the first out the door with a jumbo security in 2017. Who’s next?


January 6, 2017 - IMFnews

Heavy Agency MBS Production Lifted Asset Securitization to 3-Year High in 2016

In 2016, the non-agency MBS market was a dud…


January 5, 2017 - IMFnews

Final GSE MBS Tally for 4Q16: Just Shy of $300 Billion; Best Quarter Since 2Q13

Fannie Mae’s MBS issuance in 2016 was up 23.3 percent from the previous year…


December 29, 2016 - IMFnews

Bayview Issues $226.4 Million Non-Agency MBS Backed by Seasoned ‘Daily Simple Interest’ Mortgages

The new MBS is backed by 4,274 mortgages that have seasoned for an average of 10.6 years.


December 28, 2016 - IMFnews

The Largest MSR Deal in Years: PHH Agrees to Sell $72 Billion of Bulk Product to REIT ‘New Rez’

PHH said it will subservice the loans for New Residential "for an initial period of three years, subject to certain termination provisions."


December 28, 2016 - IMFnews

FHFA IG Notes Lack of Transparency in CSP Costs

Instead, the FHFA only disclosed specific CSP cost data once – in a September 2015 status report…


December 27, 2016 - IMFnews

Treasury Department Officials: Obama Supports ‘Explicit’ Guaranty on a ‘Defined Class’ of MBS

Some GSE observers believe an “implicit” guaranty is the same thing as an “explicit” one…


December 27, 2016 - IMFnews

DB and Credit Suisse Settle Legacy MBS Cases with DOJ; Barclays Faces New Lawsuit

Subprime MBS cases continue to haunt Wall Street…


December 27, 2016 - IMFnews

Is it the End of an Era for GSE Loan Buybacks?

Excluding legacy-related buybacks, total GSE seller repurchases would have been down 9.9 percent…


December 22, 2016 - IMFnews

Fitch Ranked Tops in Rating Non-Mortgage ABS During First Nine Months of 2016

Fitch had a 55.3 percent share of the ABS ratings market through September...


December 22, 2016 - IMFnews

Freddie Issues its First CRT Securitization Backed by Seasoned Mortgages

The mortgages in the CRT deal have seasoned for an average of 10 years and are serviced by Select Portfolio Servicing.


December 22, 2016 - IMFnews

CBO Says Fannie and Freddie Should Raise G-Fees

Reducing subsidies also would help renew private sector participation in the secondary market, the Congressional Budget Office believes…


December 20, 2016 - IMFnews

AMC Dominates Third-Party Due Diligence Completed on Non-Agency MBS

Fitch said AMC’s market share of due diligence on non-agency MBS was boosted by the acquisition of JCIII & Associates a year ago.


December 19, 2016 - IMFnews

Proposals Not Enough to Revive Non-Agency MBS Market

A little less than $10.0 billion in prime non-agency MBS will be issued in 2016, according to estimates by Inside Nonconforming Markets.


December 19, 2016 - IMFnews

Securitization Rates Jumped Higher in 3Q16

For the first nine months of 2016, the securitization rate was 67.7 percent, Inside MBS & ABS found…


December 19, 2016 - IMFnews

A Bullish Sign for Fannie and Freddie? Rep. Mulvaney as Trump’s OMB Director?

Treasury controls the senior preferred stock of the GSEs. The junior preferred and common continues to trade in the over-the-counter market and through private transactions. The latter two classes of stock are considered speculative in nature.


December 16, 2016 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


December 16, 2016 - Inside MBS & ABS

NY Court Rejects Credit Suisse’s Bid to Dismiss AG’s MBS Claims; Bond Trader Indicted for MBS Fraud

A New York appellate court this week denied Credit Suisse’s motion to dismiss claims made by NY Attorney General Eric Schneiderman in relation to the creation and sale of MBS to investors. In a majority decision, the New York Supreme Court held that the AG’s claims of securities fraud and persistent fraud or illegality are not time-barred, finding that the claims under the state Martin Act and Executive Law are governed by the six-year statute of limitations rather than the three-year limitations found in Section 214(2) of the state’s Civil Practice Law and Rules (CPLR). As of March 21, 2012, the parties entered...


December 16, 2016 - Inside MBS & ABS

FOMC Finally Raises Interest Rates, Projects More in 2017. Higher Rates May be Here to Stay, Analysts Say

This week, for only the first time this year and only the second time in the last decade, the Federal Reserve raised interest rates by 25 basis points, a move widely expected by market participants. What captured more attention was an upward adjustment of the Federal Open Market Committee’s so-called “dot plot,” suggesting that the U.S. central bank anticipates possibly raising rates three times during each of the next three years. Last year at this time, the FOMC raised...


December 16, 2016 - Inside MBS & ABS

As Rates Continue to Rise, mREITs Face Declines In MBS Book Value, But Slower Prepayment Speeds

Real estate investment trusts that invest in agency MBS could be in for some turbulence on their book values in the coming quarters if rates continue to rise – as they have since the November election. As Inside MBS & ABS went to press, most analysts had come to the same conclusion: that publicly traded mortgage REITs have underperformed most financial stocks, including nonbank lender-servicers such as Ocwen Financial, PHH Corp. and Walter Investment Management Corp. Then again, investing in so-called mREITs has never been...


December 16, 2016 - Inside MBS & ABS

Fitch Ranked Tops in Rating Non-Mortgage ABS and Non-Agency MBS During First 9 Months of 2016

Fitch Ratings edged out Standard & Poor’s as the most active rating services in the non-mortgage ABS market during the first nine months of 2016, a new Inside MBS & ABS analysis and ranking reveals. Fitch also was the top rating service in the more subdued non-agency MBS market. The company rated some $10.80 billion of non-agency MBS, or 64.8 percent of the total market, which includes a substantial volume of unrated private deals. DBRS (37.2 percent market share) and Moody’s Investors Service (34.5 percent) were...[Includes two data tables]


December 16, 2016 - Inside MBS & ABS

CBO Suggests Higher GSE G-Fees and Lower Loan Limits to Help Reduce Deficit Over Next 10 Years

The Congressional Budget Office is looking for ways to reduce the budget impact of government-backed mortgage programs and recommends that Fannie Mae and Freddie Mac increase their guarantee fees and/or significantly lower their loan limits. But the CBO admits those changes would result in raising the cost to borrowers and could potentially restrain the housing market. Under CBO scorekeeping, MBS guarantees provided by the two government-sponsored enterprises from 2017 to 2026 will cost the government $12 billion. Reducing subsidies also would help renew private sector participation in the secondary market, the CBO said. It proposes...


Poll

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.

vote to see results