MBS, ABS Issuance
Browse articles from all of our Newsletters related to MBS, ABS Issuance.
June 14, 2013 - Inside MBS & ABS
MBS & ABS Issuance at a Glance
One page of issuance data.
June 14, 2013 - Inside MBS & ABS
Agencies Drive Mortgage Securitization Rates to Record Levels in 1Q13, Timing Issues a Factor
New single-family MBS issuance accounted for a record 90.1 percent of home loan originations during the first quarter of 2013, according to a new Inside MBS & ABS analysis. An estimated $500.0 billion of new home mortgages were originated during the first three months of the year, down 4.8 percent from the fourth quarter of 2012, as refinance activity began to weaken. But mortgage securitization activity declined at a slower pace, falling just 0.6 percent in the first quarter. That pushed...[Includes one data chart]
June 7, 2013 - Inside MBS & ABS
MBS & ABS Issuance at a Glance
One page of issuance data.
June 7, 2013 - Inside MBS & ABS
Sallie Mae’s recently announced plan to split into two publicly traded companies isn’t leaving analysts at ratings services or Wall Street firms with much to cheer about on multiple fronts. In late May, the Sallie Mae board of directors authorized newly appointed CEO John Remondi to press ahead with plans to split the company’s existing businesses into two publicly traded entities – a new education loan management firm, known as NewCo, and a consumer banking company, to be known as Sallie Mae Bank. The board’s stated intention with the move, talked about since at least as early as 2010, is...
June 7, 2013 - Inside MBS & ABS
Citadel Says It Will ‘Absolutely’ Securitize Nonprime Mortgages in the Next 12 Months
At first, residential origination volumes were slow at Citadel Loan Servicing Corp., a new player in a lonely market: nonprime production. But that was two months ago, when the Irvine, CA-based company first opened its doors. “People are finally calling us,” said Dan Perl, CEO of the privately held nonbank. By the time June ends, the company will have funded almost $6 million for the month, maybe as much as $8 million. The origination numbers, of course, are miniscule compared to monthly conventional volume, but in the “new” nonprime space Citadel is probably doing more business than the two-dozen or so nonprime or hard money lenders that are quietly toiling away in selected markets. For the industry to revive...
June 7, 2013 - Inside MBS & ABS
Agency MBS Issuance Down Slightly in May, 2013 Still Well Ahead of Last Year’s Pace
A slowdown in production at Freddie Mac was the main factor behind a decline in total agency MBS issuance in May, according to a new Inside MBS & ABS ranking and analysis. A total of $148.28 billion of single-family agency MBS were issued last month, down 2.6 percent from April’s level. May was the slowest month for agency MBS issuance so far in 2013, with slightly less volume than March’s $148.35 billion. Freddie’s production was...[Includes one data chart]
June 6, 2013 - Inside Mortgage Finance
MBA Seeks ‘Equal Access’ to Secondary Market For Smaller Lenders, Same Guaranty Fee for All
Small lenders should be afforded “equal access” to the secondary market and the same execution opportunities as their larger contemporaries, and they would under a reform plan proposed by the Mortgage Bankers Association. A “concept paper” released by the MBA this week recommends immediate steps the Federal Housing Finance Agency can take by way of secondary market reform of the government-sponsored enterprises Fannie Mae and Freddie Mac on behalf of lenders of all sizes, including inducing comparable guaranty fees and eliminating underwriting concessions for large lenders. The MBA called...
May 31, 2013 - Inside FHA Lending
GNMA Finds No Dissent Against ‘One MBS’ Plan
Wall Street raised no objections to a Ginnie Mae proposal to consolidate its two mortgage-backed securities programs, indicating the move would be good for securitization and result in other positives. However, there appeared to be no consensus among players on how to get there. Representatives of Ginnie Mae and the Securities Industry and Financial Markets Association met early this month to discuss the agency’s proposal. Analysts agreed it is far too early in the game to discern a clear path towards a single Ginnie Mae MBS program and that implementation is likely years away. Nevertheless, there were ...
May 31, 2013 - Inside Nonconforming Markets
Chase’s Latest Non-Agency Jumbo MBS Intriguing
The new non-agency jumbo mortgage-backed security from JPMorgan Chase has been described as both encouraging and puzzling by non-agency participants. The $442.54 million non-agency MBS shows that Chase thinks the non-agency securities market – largely the domain of nonbanks since 2010 – is strong enough for the bank to issue its second jumbo security this year. Non-agency MBS participants have welcomed the competition, noting that activity from a big bank such as Chase could prompt greater ...
May 31, 2013 - Inside MBS & ABS
MBS & ABS Issuance at a Glance
One page of issuance data.
May 31, 2013 - Inside MBS & ABS
Bank and thrift holdings of non-mortgage ABS declined slightly in the first quarter of 2013, but remained well above a year ago, according to a new Inside MBS & ABS ranking and analysis. Banks and thrifts held $163.7 billion of ABS in portfolio as of the end of March, off 0.5 percent from the previous quarter. But early 2013 holdings were up 9.0 percent from the first quarter of last year, including increases in most ABS categories. The call-report ABS data include...[Includes one data chart]
May 31, 2013 - Inside MBS & ABS
Chase Bundling Jumbo Mortgages From Smaller Lenders into Non-Agency MBS
JPMorgan Chase is set to issue a unique jumbo MBS, its second of the year, that will include originations from 20 different lenders that far outweigh the company’s contributions to the deal. Another bank, EverBank, this week took steps to issue its second jumbo deal of 2013 as well. Since 2008, big banks have largely held their non-agency jumbo originations in portfolio, seeing better execution than non-agency MBS issuance. However, strong demand from non-agency MBS investors and a desire to shrink mortgage exposure has prompted Chase to resume issuing jumbo MBS. Chase declined...
May 24, 2013 - Inside The GSEs
Freddie Launches New MBS Modified Loan Program
Freddie Mac this week issued $1.04 billion of mortgage-backed securities backed by modified loans. The notes are being pooled into new Freddie Mac “Fixed-Rate Modified Participation Certificates” with new "MA-MD" prefixes. The GSE bought the majority of these loans out of participation certificates when they were at least 120 days past due. A Freddie official said that it will not sell the new bonds in the open market and instead will hold them on balance sheet.
May 24, 2013 - Inside MBS & ABS
MBS & ABS Issuance at a Glance
One page of issuance data.
May 24, 2013 - Inside MBS & ABS
Ginnie Mae Proposes Revised Loan Buyout Policy, Change Won’t Trigger Higher Repurchase Activity
Ginnie Mae has proposed revising its buyout policy to eliminate inconsistencies in servicers’ repurchase practices and to discourage early buyouts of seriously delinquent loans from Ginnie MBS. Under the current policy, Ginnie Mae issuers may buy out delinquent loans if the borrower fails to make any payment for three consecutive months. However, many issuers have been applying the policy inconsistently, according to Michael Drayne, senior vice president for issuer and portfolio management at Ginnie Mae. Some servicers have been interpreting...[Includes one data chart]
May 24, 2013 - Inside MBS & ABS
Ginnie Efforts to Consolidate MBS Programs Could Be Costly, But Most Participants Support Concept
Ginnie Mae officials are moving ahead to create a blueprint for consolidating its two MBS programs, although some industry experts say the proposal could cost investors $5.5 billion. The agency got considerable backing from a variety of stakeholders for its “straw man” proposal to shift to a single MBS program based on the existing Ginnie II, said John Getchis, senior vice president in Ginnie’s capital markets office. “We got...
May 24, 2013 - Inside MBS & ABS
Securitization Players Endorse Unsolicited Rating Requirement, Differ on Specifics
Security issuers, investors and the rating services largely praised unsolicited rating requirements established by the Securities and Exchange Commission in 2010, but they had different views on how the rules should be changed. “Rating agency information arbitrage has been eliminated,” Kevin Duignan, global head of structured finance at Fitch Ratings, said of the SEC’s Rule 17g-5, which established unsolicited rating standards. “We’re all getting the same information and we know we’re getting the same information.” Rule 17g-5 requires...
May 17, 2013 - Inside Nonconforming Markets
Redwood Increasing Focus on Purchase Mortgages
Redwood Trust has recently put an increased emphasis on acquiring purchase mortgages. The loans have higher loan-to-value ratios than refinances included in Redwood’s non-agency mortgage-backed security issuance, a potential concern according to Kroll Bond Rating Agency. Redwood said it acquired $955 million in purchase mortgages from its correspondent lenders in the first quarter of 2013, up from $550 million the previous quarter. The purchase-mortgage share of Redwood’s acquisitions is also increasing ...
May 17, 2013 - Inside Nonconforming Markets
Separate R&W Regimes Possible for Jumbo MBS
Although Redwood Trust’s soup-to-nuts approach to representations and warranties has dominated the fledgling recovery in jumbo mortgage-backed securities issuance, some experts think a shorter term alternative may gain popularity among issuers. It’s important for investors and rating services to anticipate putbacks in jumbo MBS, Peter Sack, a managing director at Credit Suisse, said during a panel session at the recent secondary market conference sponsored by the Mortgage Bankers Association ...
May 17, 2013 - Inside MBS & ABS
MBS & ABS Issuance at a Glance
One page of issuance data.
May 16, 2013 - Inside Mortgage Finance
Experts: Open Jumbo Mortgage Market to Private Capital, Make Government Guaranty ‘Explicit’
In exploring how to attract more private capital into the housing finance system, policymakers should permit the jumbo mortgage market to stand on its own absent a government guaranty and make any future government backing explicit, experts told members of the Senate Banking Subcommittee on Securities, Insurance and Investment this week. Given that loans over the old $417,000 conforming limit account for a quarter of the dollar volume of mortgages per year, a slow and measured hand off of this segment to private capital is a low-maintenance way to reduce the government’s mortgage footprint, according to Mark Willis, resident research fellow at the New York University Furman Center for Real Estate and Urban Policy. Inside Mortgage Finance estimates that loans exceeding $417,000 accounted for 16.8 percent of originations in 2012. “Opening up the market above $417,000 should provide...
May 16, 2013 - Inside Mortgage Finance
More GSE Business in Multi-Issuer Pools as Smaller Lenders Cope With Depleted Correspondent Channel
More Fannie Mae mortgage business is ending up in multi-issuer pools as more lenders turn to direct sales to the government-sponsored enterprise, and experts say the company has been able to turn the trend to its advantage in the securities market. According to a new loan-level analysis of single-family mortgage-backed securities by Inside Mortgage Finance, some 39.1 percent of Fannie’s MBS production in the first quarter of 2013 was in multi-issuer pools. That compared to 30.0 percent, by dollar volume, of the GSE’s MBS issuance back in the first quarter of last year. Single-seller pools, generated mostly by the giants of the mortgage lending industry, continue...
May 10, 2013 - Inside MBS & ABS
MBS & ABS Issuance at a Glance
One page of issuance data.
May 10, 2013 - Inside MBS & ABS
GSE Mortgage Portfolios Continued to Shrink In Early 2013, Asset Sales to Come This Year
The retained mortgage portfolios of Fannie Mae and Freddie Mac continued to decline through natural attrition during the first quarter of 2013, falling by 4.9 percent from the previous quarter, according to an Inside MBS & ABS analysis of earnings reports released by the two government-sponsored enterprises this week. Fannie and Freddie held $1.13 trillion in mortgage assets as of the end of March. With heavy refinance activity, the rate of decline in early 2013 was faster than it had been; GSE holdings were down 13.6 percent from year-ago levels. There was...[Included one data chart]
May 9, 2013 - Inside Mortgage Finance
Fannie Mae, Freddie Mac and their government overseer are considering adding new features to the common securitization platform in addition to the major components in the initial design, according to officials speaking at the Mortgage Bankers Association Secondary Market Conference in New York this week. A potential addition to the project would include “life flow data” about the mortgage transaction, said Manoj Singh, associate director in the Federal Housing Finance Agency’s Office of Strategic Initiatives. The common securitization platform, or CSP, has been focused on the securitization function, but feedback from the industry has raised the prospect of expanding it to house all the data points that could be needed over the life of the loan, including foreclosure disposition, if it comes to that. Once the government-sponsored enterprises start...
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Poll
What should be done to “reform” Fannie Mae’s and Freddie Mac’s position in the mortgage market?
- Wind the two GSEs down as quickly as possible while setting up some new government guarantee program for conservatively underwritten conventional mortgages.
25%
- Let the two GSEs continue to funnel money to the Treasury while developing a plan to take them out of conservatorship as private companies.
52%
- Do nothing since the housing market is too dependent on the two GSEs and Congress is unlikely to agree on a major change in the status quo anytime soon.
23%
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