MBS, ABS Issuance

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

December 12, 2014 - Inside The GSEs

Slowdown in Purchase Market Cooled GSE MBS in November

Seasonal trends hit the GSE single-family mortgage-backed securities business in November, with new issuance of single-family MBS tumbling 15.1 percent from October. A new Inside the GSEs analysis of loan-level MBS disclosures reveals that a sharp 22.0 percent drop in securitization of purchase-money mortgages was the major factor in the November decline. Refinance loans delivered to Fannie Mae and Freddie Mac MBS pools were off a milder 6.8 percent from the previous month. In fact, more than half of Fannie’s MBS flow in November came from refinance loans, the first time since March that purchase mortgages accounted for less than half of the GSE’s business. One sign of the increased refinance share of GSE business ... [with two exclusive charts]


December 12, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


December 12, 2014 - Inside MBS & ABS

Secondary Market Reps Discuss Reg AB II Concerns With SEC Officials, Work Projects Moving Forward

Structured Finance Industry Group staff and some investor members met recently with the Securities and Exchange Commission’s Office of Structured Finance to talk about the initial reaction that investors had to the final Regulation AB II rule. Among topics addressed were market trends, operational aspects and scope of applicability of the final rule, according to an update SFIG provided its members recently. Meanwhile, the SFIG is...


December 5, 2014 - Inside FHA Lending

FHA to Share in Landmark BofA Settlement

The FHA and Ginnie Mae will share in the record-setting $16.7 billion settlement between Bank of America, the Department of Justice and certain other federal agencies and six states to resolve claims related to mortgage fraud and toxic mortgage-backed securities. The FHA will receive approximately $800 million and an undisclosed amount for consumer relief from BofA. The bank was accused of falsely certifying poorly underwritten loans for FHA insurance, resulting in huge losses for the agency. It is unclear how much Ginnie Mae’s share would be from the settlement. “As a direct endorser of FHA-insured loans, Bank of America performs a critical role in home lending,” said U.S. Attorney Loretta Lynch for the Eastern District of New York during the announcement of the global settlement in August. “In obtaining a payment of $800 million and sweeping relief for troubled homeowners, we have not ...


November 26, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


November 26, 2014 - Inside MBS & ABS

Auto Loan ABS Issuers Will Likely be Subject to New Risk-Retention Requirements, Moody’s Says

The odds are stacked against auto loan ABS issuers being able to significantly lower the amount of credit risk they have to retain in securitizations under the recently adopted risk-retention rule. That’s mostly because of the strict underwriting criteria for underlying loans to qualify for the exemption from the requirement, according to a new ABS research report from Moody’s Investors Service. “Under the final risk-retention rule of the Dodd-Frank Act, auto loan ABS issuers can reduce the financial interest they must retain in their transactions through a qualifying automobile loan (QAL) exemption,” explained report authors Jeffrey Hibbs, assistant vice president, and Henry Chen, an associate analyst. Issuers can put...[Includes one data chart]


November 21, 2014 - Inside FHA Lending

GNMA Eyes Stronger Oversight of Nonbank Issuers

Ginnie Mae is seeking comment on several proposed data collections, including those that would strengthen the agency’s ability to monitor participants in its mortgage-backed securities programs. Due to its growing concern over the influx of non-depository issuers into the single-family MBS program, Ginnie has proposed to collect more loan-level data to supplement the information already being collected and reported on a monthly basis. The proposed data collection consists of bankruptcy-related information (action type, case identifier, chapter type, bar date) as well as borrower-related information (borrower bankruptcy indicator, classification type, total mortgaged properties, counseling initiated indicator and credit score date). Other proposed new data include document custodian ID, type of insurance claim coverage, investor unpaid principal balance (UPB), adjustment to ...


November 21, 2014 - Inside FHA Lending

Congress Urged to Extend Expiring VA Loan Limits

Thousands of military veterans in high-cost areas may be deprived of VA’s home-loan guarantee benefits unless Congress extends the current VA loan limits before the end of the year. Those loan limits expire on Dec. 31, 2014. The VA loan limits are based on median home values estimated by the FHA, providing loans up to 125 percent of local area median price. The program does not set a cap on how much a veteran can borrow to finance a home purchase but it does limit the maximum amount it can guarantee to 25 percent of the current loan limit. Veteran and industry groups are urging Congress to make the VA limits permanent. A VA spokesperson said the agency was not asked for a position on the issue since Congress did not put forward any bill in any of the hearings this year. “But as a general rule, VA wants to maximize the opportunities ...


November 21, 2014 - Inside FHA Lending

HECM Portfolio Down to Negative in FY 2014

The economic value of the FHA’s Home Equity Conversion Mortgage legacy portfolio fell to negative $0.9 billion in fiscal 2014 due mainly to volatility in long-term house prices and interest rates, according to the latest independent actuarial report on the health of the Mutual Mortgage Insurance Fund. The latest result was a significant improvement from FY 2012, when the fund stood at negative $2.8 billion. In fiscal 2013, the HECM portfolio’s economic value of positive $6.5 billion appeared to be a whopping change from the previous year but that amount reflected a $4.6 billion cash infusion from the forward program and from the $1.7 billion mandatory appropriation, the report clarified. The report also showed a corresponding decline in the HECM capital ratio to negative 1.20 percent. Actuarial projections for fiscal 2015 place the HECM portfolio’s economic value at negative $1.1 billion. The fund’s capital resources for ...


November 21, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


November 21, 2014 - Inside MBS & ABS

RMBS Market Optimists See Some Key Positives, But Pessimists Cite Shriveled Levels of Issuance

Top mortgage finance professionals and government officials gathered in New York City last week to discuss the prospects for the non-agency MBS market, and their assessments were all over the board, a sign of the uncertainty many participants have about trying to resuscitate a stagnant sector. “It’s been seven years since the financial crisis, and certainly a lot of things have changed,” said Rui Pereira, managing director at Fitch Ratings, during a panel at the non-agency MBS reform symposium sponsored by the Structured Finance Industry Group and Information Management Network. He then cited...


November 14, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


November 14, 2014 - Inside MBS & ABS

Benchmark Transaction Could Integrate With RMBS 3.0 To Help Attract Private Capital, Treasury Official Says

A top Obama administration official told secondary market participants this week that the concept of a “benchmark transaction” could help the non-agency RMBS market overcome its feeble condition. Used in conjunction with the industry’s RMBS 3.0 project, such a mechanism could help clear away the rubble from the market’s collapse and attract big institutional investors that have largely refused to come back in from the sidelines. “The now widely recognized structural deficiencies in the legacy private-label securitizations that came to light during the financial crisis truly shattered the trust of market participants, with the result that almost seven years now after the collapse, this market is barely clinging to life,” said Michael Stegman, special counselor to the U.S Treasury for housing finance policy. “Concrete reforms are clearly needed to rebuild confidence and establish a resilient, sustainable architecture to bring back significant private capital to the U.S. housing market.” Stegman delivered...


November 7, 2014 - Inside MBS & ABS

Agency MBS Issuance Rose to 12-Month High In October, Thanks to Surge in Ginnie Volume

New issuance of agency single-family MBS climbed for the eighth consecutive month in October, according to a new Inside MBS & ABS analysis and ranking. Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $93.01 billion of new single-family MBS during October, up 2.1 percent from September. October production was the highest monthly volume for the market since October 2013, and reflected steady growth since new issuance bottomed out in March of this year. But the gain was...[Includes two data charts]


Poll

What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

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