MBS, ABS Issuance

Browse articles from all of our Newsletters related to MBS, ABS Issuance.

July 31, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.

July 31, 2015 - Inside MBS & ABS

When it Comes to Issuing New MBS, Bank of America Continues Its ‘Drop Dead’ Attitude Toward Fannie Mae

Over the past few weeks, an unconfirmed rumor was making the rounds that Bank of America would once again begin securitizing newly originated mortgages through Fannie Mae. But a quick check with both parties indicates that the “cold war” between the two isn’t likely to thaw anytime soon. Terry Francisco, a spokesman for BofA said the bank is only selling Home Affordable Refinance Program loans to Fannie. The bank, he noted, discontinued securitizing newly originated non-HARP loans through the government-sponsored enterprise in 2012. According to figures compiled by Inside MBS & ABS, over the past three years almost all of the non-refinance activity between the two has centered...

July 31, 2015 - Inside MBS & ABS

Ginnie Mae Underscores Importance of Issuer Seasoning Before Engaging in Co-Issuance Programs

Ginnie Mae said new MBS issuers need to gain some experience in the agency’s program before they are allowed to do servicing transfers, but some newly approved issuers have attempted to do so. Roy Hormuth, director of single-family securitization at Ginnie Mae, said there has been some misconception among new issuers about doing a co-issuance program in their first month in the Ginnie program despite the fact that they are not ready for it. New issuers must first demonstrate that they can successfully manage the servicing themselves before they can transfer servicing immediately, he said. In a co-issuance transaction, a company sells...

July 31, 2015 - Inside MBS & ABS

ARM, HARP MBS Issuance Tumbles in 2015, But Agency Jumbo and 20-Year Product Up Sharply

Heavy refinance activity in the first half of 2015 caused a significant shift in the kinds of single-family MBS produced by Fannie Mae, Freddie Mac and Ginnie Mae. Issuance of MBS backed by adjustable-rate mortgages has dropped sharply in 2015, and ARMs haven’t had much of a presence for years. ARM MBS production by Fannie and Freddie in the first half of 2015 was down 20.1 percent from a year ago. The drop in Ginnie ARM securitization was less severe, 18.3 percent, but ARMs accounted for an even smaller share of overall production (1.7 percent) at Ginnie than the 2.9 percent share they had in government-sponsored enterprise MBS. Oddly, the heavy refinance market in the first half of 2015 did not appear...[Includes two data tables]

July 30, 2015 - Inside Mortgage Finance

Ginnie Mae Exerts New Controls on Servicing Changes as MSR Transfers Maintain Robust Pace

Ginnie Mae this week adopted a prior-approval policy for mortgage servicers that switch subservicers, bring subservicing in-house or move in-house servicing to subservicers. Noting an increasing number of companies that are making such changes in their servicing operations, the agency said some mandatory reporting requirements are getting lost in the shuffle. Effective immediately, any Ginnie issuer that wants to bring servicing in-house from a subservicer must get the agency’s prior written approval, according to All-Participants Memo 15-11. Existing rules require...

July 24, 2015 - Inside FHA/VA Lending

FHLB Chicago’s MPF Program Announces First Ginnie Mae MB

The Federal Home Loan Bank Mortgage Partnership Finance program has announced its first security issuance with a Ginnie Mae guarantee. The $5 million security is backed by home loans originated by community banks and credit unions through the MPF Government MBS product. The Mortgage Bankers Association welcomed the new MBS, seeing it as another opportunity for all lenders to access the capital markets directly, reducing costs and increasing originations. “Many community banks use the FHLB MPF program to sell conventional mortgages into the secondary market,” observed Ron Haynie, senior vice president at the Independent Community Bankers of America. “This expansion in aggregating and securitizing government loans provides community banks with the opportunity to reach more borrowers, especially in rural and small-town markets, and to safely sell those loans to ...

July 24, 2015 - Inside Nonconforming Markets

Mixed Disclosure on Chase’s New Jumbo MBS

Investors interested in the jumbo mortgage-backed security from JPMorgan Chase that’s set to be issued next week received new disclosures with sometimes confusing information thanks to a rule from the Securities and Exchange Commission. JPMorgan Mortgage Trust 2015-4 will have a balance of $388.34 million, according to presale reports published last week by Kroll Bond Rating Agency and Moody’s Investors Service. A week before the presale reports ...

July 24, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.

July 24, 2015 - Inside MBS & ABS

Mid-Year GSE Risk-Sharing Numbers on Track to Beat Last Year’s Total Issuance

Fannie Mae and Freddie Mac risk-sharing transactions have gained steam in the first half of 2015 with the GSEs issuing $7.04 billion through the end of June, a 62.9 percent increase over the first half of last year. Since the credit-risk transfer program launched in July 2013, the two government-sponsored enterprises have sold $19.61 billion of CRT bonds to a growing universe of investors. The CRT bonds transferred a portion of the credit risk on some $704.45 billion of single-family MBS. In addition, Fannie and Freddie have purchased...

July 24, 2015 - Inside MBS & ABS

Loan-to-Value Ratios on New Conduit Commercial MBS Surpass Peak Seen Before Financial Crisis

Moody’s Investors Service is worried about increasing leverage in commercial MBS conduit deals, which reached peak levels not seen since 2007. Issuance of non-agency commercial MBS has been strong in recent years, boosted by demand for conduit deals. In a recent report, Moody’s noted that the credit quality of conduit deals continues to deteriorate, with the third-quarter pipeline indicating further increases to loan-to-value ratios derived by the rating service. The Moody’s LTV ratio on conduit CMBS hit...

July 23, 2015 - Inside Mortgage Finance

Purchase-Mortgage Market Stronger than Expected Heading Into Summer, Plenty of Demand from Owner-Occupants

Originations of purchase mortgages were strong in the second quarter of 2015 and through the start of summer, according to industry participants. In recent months, demand for home purchases has been driven by current homeowners and first-time homebuyers, two groups that are particularly reliant on mortgage financing. “The purchase market has been stronger than people expected in the second quarter,” said Paul Miller, a managing director at FBR Capital Markets. Kevin Hester, chief lending officer at Home BancShares, said...

July 17, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.

July 16, 2015 - Inside Mortgage Finance

First-Time Homebuyers Differ from Repeat Buyers But Aren’t Necessarily Riskier, FHFA Research Suggests

Originations to first-time homebuyers perform worse than originations for repeat buyers, with the differences tied to factors beyond solely whether the borrower is a first-time homebuyer, according to new research from the Federal Housing Finance Agency. In a working paper published late last week, Saty Patrabansh, a senior economist at the FHFA, determined that the difference in performance between the first-time homebuyers and repeat buyers can be attributed to differences in the distributional make-up of the two groups and not to the premise that first-time homebuyers are an inherently riskier group. He analyzed...

July 10, 2015 - Inside FHA/VA Lending

Issuance of Government-Backed Ginnie MBS Increases in 2Q15

Ginnie Mae issuance of government-insured mortgage-backed securities rose a whopping 47.3 percent in the second quarter of 2015 from the previous quarter, powered by a robust FHA refinancing volume, according to an Inside FHA/VA Lending analysis of agency data. Government-backed Ginnie MBS production in the second quarter totaled $117.5 billion, up from $79.8 billion in the prior quarter. Volume year-to-date also increased by 57.7 percent from the first six months of last year. From May to June, government-backed securitization increased a modest 2.9 percent. FHA loans comprised 62.6 percent of Ginnie MBS issuance in the second quarter while VA accounted for 33.7 percent. Securitized loans with a Rural Housing Service guaranty represented 3.6 percent of total Ginnie MBS issuance during the period. FHA loan securitization was robust in the second quarter, as volume ... [ Charts ]

July 10, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.

July 10, 2015 - Inside MBS & ABS

Commercial Real Estate Finance Trends Show Increased Capital Flow, Healthier Market

The enormous amount of capital flowing into the commercial real estate financing industry is the biggest factor that has shaped the market in recent years, according to Brian Stoffers, global president at CBRE Capital Markets. “It’s recognized as a good place to be if you’re an asset allocator, and it’s recognized as an institutional play with growth opportunities and cash flow,” he said speaking on a recent real estate panel in Miami. “So that kind of capital flow has driven [capitalization] rates lower.” Commercial real estate lending levels are exceeding...

July 10, 2015 - Inside MBS & ABS

Greek Debt Crisis Causes MBS Volatility, but the Big Fear is China; A Rate Plunge in the Cards?

Estimating where MBS prices might be headed has never been an easy game – and thanks to the debt crisis in Greece and a stock meltdown in China, it’s become a whole lot more difficult of late. But for now, analysts and market watchers are certain of one thing: MBS prices have been volatile the past two weeks thanks to a flight to quality, forcing investors everywhere to buy U.S. Treasuries. And because mortgages track Treasuries, yields have fallen and prices have increased. “The Greek crisis already has taken...

July 10, 2015 - Inside MBS & ABS

Securitization Groups Stress the Importance of Federal Preemption for Nonbank Participants in MBS and ABS

A number of trade groups that represent firms involved in the securitization market are pushing for an appeal to be heard in a case that has significant implications for the MBS and ABS markets. A ruling in May by the Second Circuit Court of Appeals in Madden v. Midland Funding determined that nonbanks shouldn’t receive the federal preemption of state law that has been allotted to banks under the National Bank Act. “The outcome of the case would significantly impair...

July 9, 2015 - Inside Mortgage Finance

As Rates Rise Servicing Values Begin to Firm Up, But Prices Have Come Down From Peaks Seen Last Year

Thanks to the recent uptick in interest rates, sellers of mortgage servicing rights are seeing strong bids on new production, but the market is being described by advisors as “sustainable,” compared to some of the frothy peaks of last year. June was actually a slow month for servicing sales, dealmakers told Inside Mortgage Finance, but that was to be expected, given all the contracts inked in April and May that needed time to close. With the second quarter having just ended, several large flow and bulk MSR transactions are...

July 3, 2015 - Inside Mortgage Trends

Retail Channel Played Key Role in Second-Quarter GSE Business Surge

Retail mortgage originations accounted for 61.0 percent of the single-family home loans securitized by Fannie Mae and Freddie Mac during the second quarter of 2015, according to a new Inside Mortgage Trends analysis. That was up from a 58.4 percent retail share during the first three months of the year, and it marked the highest retail share of new Fannie/Freddie business since the … [includes two data charts]

July 3, 2015 - Inside MBS & ABS

Mayors Call on HUD, GSEs to Stop NPL Sales to Wall Street

The U.S. Conference of Mayors has joined a growing number of entities urging the Department of Housing and Urban Development, Fannie Mae and Freddie Mac, and certain major banks to stop selling distressed and nonperforming mortgages to Wall Street investors. Rather than sell pools of NPLs to private-equity firms, hedge funds and other speculators, sell them to qualified nonprofits for the purpose of saving homes from foreclosure and creating affordable housing, the group stated in a resolution co-sponsored by 17 mayors. The mayors point to a joint study issued recently by the Center for Popular Democracy and the ACCE Institute. The study said most NPL pools are auctioned off at steep discounts to hedge funds and private-equity firms. “Although Fannie and Freddie have been unwilling to offer principal reduction to struggling homeowners, they often offer steep discounts when they ...

July 3, 2015 - Inside MBS & ABS

Single-Family Rental Securitizations Stable and Performing Well

Single-family rental securitizations appear to be performing well, according to analysts at Morningstar Credit Ratings, with few signs of trouble on the horizon. “Vacancy rates generally remain low, cash flows remain sufficient to cover bond obligations, and … the recently released May property-level data for the single-borrower, single-family rental asset class shows performance in line with its recent history,” the rating service said in a new report. Overall, monthly retention rates remain in the mid-70s to low-80s. Also, “delinquency rates are slightly higher from their April levels but remain mostly low.” Lease expirations are generally rising across SFR securitizations, Morningstar said, but vacancy rates have remained relatively flat month-over-month. “Although delinquency rates rose slightly across most transactions, the number of tenants past due on their payments remains low,” the analysts said. Elsewhere, so far, ...

July 3, 2015 - Inside MBS & ABS

Risk to Investors in Agency MBS Seen as Limited

Clean-up calls executed by U.S. Bank on Ginnie Mae real estate mortgage investment conduits in recent years have caused problems for some investors, but industry analysts suggest that overall, the risk agency MBS investors face from clean-up calls is limited. Analysts at Performance Trust Capital Partners, an investing firm, warned recently that U.S. Bank has made about $53 million in profit the past three years by completing clean-up calls on Ginnie REMICs where the bank was the trustee. On Ginnie REMICs, trustees are allowed to complete clean-up calls when the outstanding balance on the security falls to less than 1.0 percent of the aggregate of the original class principal balance for the security. When executing a clean-up call, the trustee pays off the investors in the MBS at par. On Ginnie deals where U.S. Bank has completed clean-up calls, the REMICs have generally been trading at ...

July 3, 2015 - Inside MBS & ABS

Higher Interest Rates Could Cause Performance Problems For Commercial MBS

An increase in short-term interest rates will have an outsized impact on commercial MBS among structured finance assets, according to Moody’s Investors Service. In a report released last week, the rating service said higher interest rates will be credit negative for existing deal performance and new issuance for commercial MBS and largely neutral for residential MBS and most ABS sectors. As interest rates rise, Moody’s said term default risk on loans backing new issue commercial MBS will increase because the loans’ debt service coverage ratios will be lower than the DSCRs at the time of origination of loans in outstanding deals. “Rates on loans backing new conduit deals will increase, thereby reducing DSCR in relation to a given property’s cash flow,” the rating service said. “New conduit deals are typically backed by loan pools that were originated no more than ...

July 3, 2015 - Inside MBS & ABS

Former Goldman Sachs and Credit Suisse Execs Ready Launch of New Non-Agency Conduit

A handful of former top executives in the mortgage departments of Goldman Sachs and Credit Suisse have launched Shelter Growth Capital Partners and hope to eventually purchase and then securitize mostly residential loans that don’t meet parameters of the qualified mortgage test. According to marketing materials provided to select originators and then passed on to Inside MBS & ABS, the Shelter Growth (or SG Capital) conduit will focus mostly on A-minus quality loans. A preliminary loan menu distributed this spring states that SG will purchase 30-year mortgages with FICO scores as low as 620. Loan amounts will range from $150,000 to $1 million. It also will finance consumers who went through a foreclosure as recently as two years ago. The coupons on the offering grid range from 5.75 percent to 9.00 percent. According to the marketing materials, SG Capital requires that all the mortgages be ...

July 3, 2015 - Inside MBS & ABS

MBS & ABS Issuance Jumped Higher in 2Q15 As Agency Single-Family Market Heated Up

Residential MBS production continued to gain speed in the second quarter of 2015 while non-mortgage securitization remained strong, according to a new Inside MBS & ABS analysis. A total of $419.42 billion of single-family MBS and non-mortgage ABS were issued during the second quarter, an increase of 21.2 percent from the first three months of the year. It was the strongest new issuance total since the third quarter of 2013 and marked the fifth straight quarterly increase since the market hit a cyclical low at the beginning of last year. Most of the gain came from the agency MBS sector, which totaled $352.73 billion in new issuance, a gain of 29.7 percent from the first quarter. All three agencies posted hefty gains, with the biggest coming at Ginnie Mae, where new issuance jumped 46.7 percent to hit $120.36 billion. A lot of Ginnie’s growth is coming from an unusual surge of refinance activity, which accounted for ... [ charts]

June 26, 2015 - Inside FHA/VA Lending

Handbook FAQs Hold No Surprises, But More Guidance Expected

The frequently-asked-questions guidance to using the FHA’s consolidated Single Family Policy Handbook is good to have though it shows just how complicated the FHA’s mortgage origination process is, according to lenders. In fact, the updated FHA handbook could still be confusing to borrowers simply because a lot more information is concentrated in one source, lenders said. According to the FHA, the more than 290 FAQs will enable lenders to make operation adjustments before the handbook goes into effect on Sept. 14, 2015. The FAQs are for information purposes only and do not apply to current FHA policies. They do not establish or modify policy contained in the handbook. The FAQs reiterate information in the handbook under headings such as Credit Underwriting, Closing and Insuring, FHA System Support and Consumer Information. Industry observers noted that the FAQs did not ...

June 26, 2015 - Inside FHA/VA Lending

USDA Securitization Volume Drops In 1Q, Rises Slightly Year over Year

$4.3 billion in rural housing loans with a U.S. Department of Agriculture guaranty were securitized during the first quarter of 2015, down 24.7 percent from the fourth quarter of 2014. Nearly all of the 10 leading USDA securitizers saw their issuances drop by more than 10 percent quarter over quarter, according to Inside FHA/VA Lending’s analysis of Ginnie Mae data. Stearns Lending reported the largest quarter and yearly declines in the volume of USDA loans securitized by Ginnie, 45.7 percent and 39.1 percent, respectively. On the other hand, the volume of securitized USDA loans rose 2.7 percent year over year. The top USDA loan securitizers, Chase Home Finance and Wells Fargo, led the market with a combined 45.9 percent market share. Chase funneled $1.3 billion in USDA-backed loans into Ginnie mortgage-backed securities while Wells Fargo delivered $621.0 million for securitization. Third-ranked PennyMac closed the quarter with $291.7 million in securitized USDA mortgage loans ... [ 1 chart ]

June 26, 2015 - Inside FHA/VA Lending

VA Jumbo Securitization up in 1Q, 2 States Account for Over 55%

Ginnie Mae securitized $6.6 billion of VA jumbo loans in the first three months of 2015, up 15.9 percent from the prior quarter, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Jumbo loans – single-family mortgages with loan amounts exceeding $417,000 – comprised 18.7 percent of total VA originations in the first quarter. VA jumbo originations outpaced FHA jumbo production, which totaled $2.8 billion in the first quarter, up 17.0 percent from the prior quarter, according to the Inside Mortgage Finance database. VA jumbos in Ginnie mortgage-backed securities issued in the first quarter included modified VA loans as well as those originated in Alaska, Guam, Hawaii and the U.S. Virgin Islands. Wells Fargo ranked first among securitizers of VA jumbos in the first quarter, with $1.3 billion in production. Second-ranked Freedom Mortgage conveyed $652.7 million in ... [ 1 chart ]

June 26, 2015 - Inside Nonconforming Markets

Mixed Response for Redwood’s Latest Innovation

A new feature Redwood Trust has included in its two most recent jumbo mortgage-backed securities has prompted support from AAA investors along with mixed reactions from rating services. The $356.45 million Sequoia Mortgage Trust 2015-2 issued in April and the $343.21 million Sequoia Mortgage Trust 2015-3 that was issued this week included a unique stop-advance feature. Servicers of the loans won’t be allowed to provide advances of principal and interest on loans that are 120+ days delinquent. The jumbo MBS were rated by Kroll Bond Rating Agency and Moody’s Investors Service ...

June 26, 2015 - Inside Nonconforming Markets

Variety Seen in Jumbo Underwriting Standards

While the characteristics of loans included in jumbo mortgage-backed securities continue to be strong overall, industry analysts note that there are significant differences in “soft” underwriting guidelines used by lenders. “Not all underwriting guidelines, and exceptions to guidelines, are created equal,” analysts at Morningstar Credit Ratings cautioned in a recent report. “Some originators recently have introduced programs that make qualifying for financing easier and require less income documentation.” The company, which is making a new push to rate jumbo MBS, reviewed the guidelines of a number of the most active jumbo originators and aggregators ...

June 26, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.

June 26, 2015 - Inside MBS & ABS

Ginnie Mae Tops in Agency REMIC Issuance In 1Q15, Credit Suisse First in Underwriting

Ginnie Mae accounted for 40.4 percent of new structured finance deals backed by agency single-family MBS during the first quarter of 2015, making it the top issuer in the sector despite a 3.9 percent drop in volume from the previous quarter. Freddie Mac was the only agency-backed real estate mortgage investment conduit issuer to increase production from the fourth quarter. Credit Suisse saw...[Includes one data table]

June 26, 2015 - Inside MBS & ABS

Issuance of Catastrophe Bonds Strong at Midpoint Of 2015, with a Focus on Florida and Earthquakes

Investor appetite for insurance risk continues to outstrip demand, prompting an increase in catastrophe bonds among other insurance-linked securities, according to industry analysts. Late last week, Fitch Ratings assigned a BB rating to a $200 million catastrophe bond that will provide re-insurance protection to Hannover Ruck for exposure to earthquakes in California. The deal will push U.S.-related issuance of catastrophe bonds to $3.86 billion in 2015, according to Artemis, a firm that tracks issuance of the bonds. A record volume of catastrophe bonds was issued...

June 26, 2015 - Inside MBS & ABS

Bayview Asset Management Chief in Charge of Non-QMs Departs, Says Securitization Outlook is Mostly Ugly

After just over a year of buying mortgages that don’t meet the qualified-mortgage test, Jeff Lemieux has departed Bayview Asset Management while signaling that a non-QM securitization likely won’t happen any time soon – or even this year. Lemieux, who headed correspondent purchases for Bayview, provided Inside MBS & ABS with a blunt assessment of both non-QM originations and securitizations: “Nothing’s happening.” Lemieux went...

June 26, 2015 - Inside MBS & ABS

SFIG Offers Alternative Card ABS Disclosure Format That Has Backing of Issuers and Investors

Proposed credit card ABS disclosure requirements from the Securities and Exchange Commission could compromise commercially sensitive proprietary issuer information and prove too burdensome for issuers, according to the Structured Finance Industry Group. The industry group this week unveiled an alternative card ABS format that was endorsed by both its issuer and investor members. The three-part disclosure “would provide more information on more metrics” than either of two options proposed by the SEC. Last year, the SEC adopted...

June 26, 2015 - Inside MBS & ABS

Fitch Ranked 1st in ABS Ratings During 1Q15, DBRS Led the Market in Rating Non-Agency MBS

Neither of the credit-rating industry’s perennial market leaders – Standard & Poor’s and Moody’s Investors Service – managed to claim a top spot during the first quarter of 2015, according to a new Inside MBS & ABS ranking. Fitch Ratings ranked as the top player in rating the bigger non-mortgage ABS market. The company rated 43 ABS issued during the first quarter that represented 64.2 percent of total issuance by dollar amount. The company rated all eight credit-card ABS issued in early 2015, along with most of the student-loan deals. Fitch raised...[Includes two data tables]

June 25, 2015 - Inside Mortgage Finance

QM ‘Patch’ for Fannie and Freddie Has Opened GSE Market for $133 Billion in Additional Business

The Consumer Financial Protection Bureau boosted Fannie Mae and Freddie Mac business by some $132.9 billion when it gave the two government-sponsored enterprises a free pass on the debt-to-income ratio requirements of the qualified-mortgage rule. For the non-agency world, a qualified mortgage has to have a DTI ratio of 43 percent or less. While the government-insured market has its own QM rules that effectively ignore DTI, a loan eligible for sale to the GSEs is considered a qualified mortgage if it meets all the QM criteria – such as no interest-only payments – other than the DTI cap. From the beginning of 2014 through the end of the first quarter of this year, about 16.3 percent of the loans securitized by Fannie and Freddie had...[Includes two data tables]


A lot has been written about the ‘Millennial Generation’ being key to the future of the housing/mortgage market, but how much of your mortgage workforce includes Millennials – those born roughly between the years 1980 to 1999?

Less than 10 percent


11 to 30 percent


Greater than 30 percent


It’s so small we can’t even measure it.


We’re tired of reading about how important Millennials are…


Housing Pulse