MBS, ABS Issuance

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

April 18, 2014 - Inside The GSEs

FHLBank Agency MBS Investments Rise During Fourth Quarter 2013

Fannie Mae and Freddie Mac mortgage-backed securities remained the preferred investment choice of the 12 Federal Home Loan Banks during the fourth quarter of 2013, though with a negligible increase from the previous quarter, according to a new analysis and ranking by Inside The GSEs based on data from the Federal Housing Finance Agency. Meanwhile, Ginnie Mae securities posted a sizable increase within the FHLBank system during the period ending Dec. 31, 2013. GSE MBS accounted for 74.9 percent of combined FHLBank MBS portfolios, 0.3 percent from the third quarter. The Finance Agency’s data do not separately break out Fannie and Freddie volume or share.


April 18, 2014 - Inside The GSEs

Fannie, Freddie Refi Deliveries Continue to Decline in March

A sustained decline in GSE refinances, coupled with faltering purchase activity throughout the first quarter, helped contribute to an overall drop in the volume of single-family mortgages securitized by Fannie Mae and Freddie Mac in March. In the first quarter of 2014, Fannie and Freddie combined for $355.8 billion in new single-family securitizations, down 63.7 percent year-to-date.In March, Fannie and Freddie produced just $37.6 billion of single-family MBS, down 15.6 percent from February. It was the lowest monthly volume since January 2009.


April 18, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


April 18, 2014 - Inside MBS & ABS

Agency REMIC Volume Declined in Early 2014, But Not as Fast as MBS Issuance

Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $60.2 billion of real estate mortgage investment conduits backed by single-family MBS during the first quarter of 2014, a relatively modest decline of 11.6 percent. New MBS issuance by the agencies fell by 26.2 percent from the fourth quarter of 2013 and was down 59.5 percent from the first three months of 2013. Freddie actually increased...[Includes two data charts]


April 18, 2014 - Inside MBS & ABS

Subprime Auto ABS Fully Recovered, Rising Issuance From More Players is Expected to Improve Liquidity

Major market indicators suggest the subprime auto ABS sector has finally returned to normal after the financial crisis, and prospects are good for a healthy market in 2014, according to research professionals at Wells Fargo Securities. “Subprime auto ABS has fully recovered from the recession, in our view,” John McElravey, head of consumer ABS research for the firm, and Bee Sim Koh, an associate in the unit, said in a recent market update. For example, new-issue volume in the sector rose...


April 18, 2014 - Inside MBS & ABS

Market for US Dollar-Denominated Residential MBS From Foreign Countries Faltered in 2013, But Some Issuers Persist

Issuance of residential MBS from foreign countries aimed at investors in the U.S. dwindled in 2013 after a few years when it surpassed new issuance of domestic jumbo deals. Activity in the market for U.S. dollar-denominated foreign MBS has picked up somewhat this year due to issuance out of Australia. Some $1.63 billion in U.S. dollar-denominated foreign residential MBS was issued in 2013, according to the Securities Industry and Financial Markets Association, a significant decline from the $10.70 billion in such issuance in 2012. The market for foreign residential MBS aimed at U.S. investors has been strong since the end of 2009, with $21.10 billion in such issuance in 2010 and $32.68 billion in issuance in 2011. After the financial crisis, issuance of U.S. dollar-denominated foreign MBS outpaced...


April 11, 2014 - Inside Nonconforming Markets

Jumbo MBS Issuance Slump Continues; Investors Shrug Off Strong Performance

The jumbo mortgage-backed security market has yet to recover from the spike in interest rates seen nearly a year ago. Investor demand for the securities remains weak, even with the pristine performance of jumbo MBS issued since 2010. Four deals were priced in the first quarter of 2014 for a total of $1.29 billion in issuance, according to Inside Nonconforming Markets. While that was a 56.0 percent increase in issuance compared with ... [Includes two data charts]


April 10, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


April 10, 2014 - Inside MBS & ABS

Non-Mortgage ABS Issued in 1Q14

Listing of all non-mortgage ABS issued in 1Q14. Each entry includes date, deal name, amount, collateral, credit ratings and manager.


April 10, 2014 - Inside MBS & ABS

Issuance of Securities Tied to MSRs Expected to Increase as Nonbank Mortgage Servicers Grow

At the end of February, Ocwen Financial issued a $123.6 million security backed by mortgage-servicing rights on agency mortgages, the first of its kind. The security was attractive to investors as well as to nonbanks, with more transactions expected, according to the Urban Institute’s Housing Finance Policy Council. The transaction has a 14-year debt obligation and was secured by Ocwen-owned MSRs on mortgages with an unpaid principal balance of approximately $11.8 billion. Investors in Ocwen Asset Servicing Income Series 2014-1 receive a monthly payment of 21 basis points of the unpaid principal balance of the reference pool in the form of an interest-only strip, along with certain other payments. In a new analysis, the HFPC’s Laurie Goodman and Pamela Lee said...


April 10, 2014 - Inside MBS & ABS

Issuers Facing Federal Search and Seizure Warrants For MBS-Related Data May Soon Find Some Relief

Companies that have received government subpoenas for electronically stored information (ESI) in connection with federal investigations of financial fraud and other white-collar crimes might find some relief in two recent court rulings, according to a recent legal analysis. In a Dechert LLP legal update, attorneys Ben Barnett, Rebecca Kahan and Nathaniel Hopkins said heightened anti-fraud activities at the Department of Justice and the Securities and Exchange Commission have resulted in increased criminal prosecutions, criminal probes and enforcement actions. Many of these actions have shown...


April 10, 2014 - Inside MBS & ABS

Change to Rating Criteria for Servicer Advance ABS And Potential Downgrades Could Disrupt Issuance

Standard & Poor’s announced late last week that it placed 96 ratings from 20 servicer-advance ABS on watch for a potential downgrade and the rating service plans changes to its rating criteria for servicer-advance ABS. Industry analysts suggest that the actions could disrupt the market for servicer-advance ABS, as S&P has been the dominant rating service in the sector. S&P said downgrades on servicer-advance ABS are possible because the analysis that accompanied ratings on certain deals didn’t consider subordinated interest amounts as part of the ratable promise. “The CreditWatch placements reflect...


April 10, 2014 - Inside MBS & ABS

Outlook for Equipment-Backed ABS Market Is Favorable, Strong Performance Expected in 2014

The equipment-backed ABS sector will likely have another good year this year, and investor interest remains strong, according to a senior analyst at the DBRS credit rating service. “For the equipment finance industry in 2014, we are moderately optimistic,” Chuck Weilamann, senior vice president at DBRS, said during a teleconference last week. “We’ve certainly seen delinquencies and charge-offs hit lows, with a five-year low achieved in 2013.” Not surprisingly, DBRS made...


April 10, 2014 - Inside MBS & ABS

Non-Mortgage ABS Issuance Off to Strong Start In 2014, Big Gains in All Major Asset Categories

New issuance of non-mortgage ABS surged to $49.68 billion in the first quarter of 2014, a strong 33.0 percent increase from the previous quarter, according to a new Inside MBS & ABS market analysis and ranking. The first three months of 2014 represented the strongest quarterly ABS issuance number since the third quarter of 2009, when $53.27 billion of new deals were issued. It was up a modest 1.7 percent from the strong start in 2013. All the major asset classes posted...[Includes two data charts]


April 4, 2014 - Inside The GSEs

BofA MBS Lawsuit Settlement Shrinks List of FHFA Defendants

It’s only a matter of time before the remaining big bank defendants settle lawsuits filed by the Federal Housing Finance Agency over billions in non-agency mortgage-backed securities sold to Fannie Mae and Freddie Mac in the years leading up to the housing crisis, predicts a legal expert. Last week, Bank of America agreed to a $9.3 billion settlement that covers its own dealings as well as those of Countrywide Financial and Merrill Lynch, which it acquired in 2008. The agreement covers some $57 billion of MBS issued or underwritten by these firms.


April 3, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


April 3, 2014 - Inside MBS & ABS

MBS/ABS Issuers, Sponsors Fear SEC’s Disclosure Proposal Would Result in Greater Liabilities, Risks

The Securities and Exchange Commission late last week gave the securities industry another month to file comments on a proposed rule that most participants already know they don’t like. Comments were originally due March 28 on the SEC’s latest proposal to require asset-backed securities issuers to make loan-level details about pending issues available to investors on their own websites, rather than the agency’s Electronic Data-Gathering, Analysis and Retrieval system. On the day the comment period ended, the SEC extended it to April 28. Many issuers and large banks think...


April 3, 2014 - Inside MBS & ABS

Mortgage Securitization Continues Freefall In Early 2014, Weakest Start Since 2000

New residential MBS issuance in the first three months of 2014 sank to the lowest quarterly volume since late in 2000, according to a new Inside MBS & ABS analysis. A total of $191.7 billion of residential MBS were issued in the first quarter of this year, down 25.5 percent from the fourth quarter of 2013. Compared to first quarter of 2013, new MBS issuance was down 59.2 percent. MBS production has been falling...[Includes two data charts]


April 3, 2014 - Inside Mortgage Finance

Waters’ GSE Reform Bill Could Influence Senate Banking Markup of Johnson-Crapo

Rep. Maxine Waters’ housing finance reform legislation may go nowhere in the House, but parts of it could be taken up by members of the Senate Banking, Housing and Urban Affairs Committee who so far have not signed on with the bipartisan reform bill that’s to be marked up at the end of April. The California Democrat’s bill differs from the Senate bill in two key ways: it requires that the private market take a smaller first-loss position in a future government-insured program for mortgage-backed securities, and it sets up a lender-owned cooperative as the sole issuer of the new MBS. The bill pushed by Sens. Tim Johnson, D-SD, and Mike Crapo, R-ID, would require...


April 3, 2014 - Inside Mortgage Finance

GSEs Start 2014 With a Thud, New Business Volume Searches for New Post-Crash Lows

New single-family business volume at Fannie Mae and Freddie Mac continued to decline in early 2014, hitting the lowest quarterly total in 14 years during the first three months of the year, according to a new Inside Mortgage Finance analysis and ranking. The two government-sponsored enterprises issued a total of $129.2 billion of single-family mortgage-backed securities during the first quarter of 2014. That was down 29.1 percent from the already weak production of the fourth quarter and off 63.7 percent from the same period in 2013. The first-quarter 2014 total marked...[Includes two data charts]


March 28, 2014 - Inside Nonconforming Markets

Redwood to Issue its First Jumbo MBS in 4 Months

If all goes as scheduled, the most prolific issuer of jumbo mortgage-backed securities since 2010 won’t issue a jumbo MBS in the first quarter of 2014, the first quarterly blank for the firm since the end of 2011. Redwood is planning to issue a $347.30 million jumbo MBS on April 2; the deal priced this week. It’s the first jumbo MBS from the real estate investment trust since November. Officials at Redwood said a lack of demand from investors has limited issuance of jumbo MBS ...


March 28, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


March 28, 2014 - Inside MBS & ABS

Non-Agency MBS Issuance by Type - 4Q13

The amount in dollars of non-agency MBS issuance from 2003-3Q13. Categories include prime, subprime, Alt A, S&D, seconds, re-MBS, other and total issuance. Quarterly data for 2012-4Q13 included. [Includes one data chart]


March 28, 2014 - Inside MBS & ABS

S&P Tops in Ranking Non-Agency MBS In 2013, Fitch First in Non-Mortgage ABS

Standard & Poor’s rated $11.72 billion of non-agency MBS issued in 2013, making it the most active rating service in the market by dollar volume, although DBRS rated considerably more deals, according to a new ranking and analysis by Inside MBS & ABS. In its heyday, S&P used to rate more than 90 percent of new issuance of non-agency MBS, but in 2013 it accounted for just 40.0 percent of the market by dollar volume. DBRS wasn’t too far behind with a 36.0 percent share, followed by Kroll Ratings and Fitch Ratings. Moody’s Investors Service rated...[Includes two data charts]


March 28, 2014 - Inside MBS & ABS

Issuers Concerned About Disclosure Mandate In SEC’s Re-Proposal of Reg AB2 Provisions

Issuers of MBS and ABS are concerned about new liabilities they are likely to face if they have to disclose loan-level information at issuance under a rule recently proposed by the Securities and Exchange Commission. In February, the SEC proposed requiring issuers to disclose loan-level data to investors on issuers’ own websites instead of on the Electronic Data-Gathering, Analysis, and Retrieval system, better known as EDGAR, the current platform for SEC-required disclosures. The comment period on the proposal was scheduled to close March 28. Preliminary comment letters submitted...


March 21, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


March 14, 2014 - Inside FHA Lending

Ginnie Mae to Begin Probe of Dormant Issuers

Ginnie Mae will begin scrutinizing issuers which, for reasons unknown, have not issued a single Ginnie Mae mortgage-backed security since obtaining their approval. Ginnie Mae President Ted Tozer said he is assigning staff to investigate the underlying cause of issuer inactivity. “We’re starting that process now to find out what their plans and objectives are to try to get a better handle on what’s going on,” he explained. With the growth in new issuers, agency staff has focused on making sure that newcomers are transitioning smoothly and are up to speed on what is happening in the mortgage securities market. But there are those that have remained inexplicably dormant. Tozer admits that agency staff is spread quite thin and the agency has been hiring more account executives lately to monitor all program participants to ensure there are not more early failures. New issuers typically go through a ...


March 14, 2014 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


March 14, 2014 - Inside MBS & ABS

House Lawmakers Look at Federal Reserve’s Role in Credit Allocation, Seek to Ensure Its ‘Independence’

Favorable shifts in macroeconomic conditions have contributed to a rise in single-family rentals and an increase in the investment in these properties by institutional buyers, prompting Moody’s Investors Service to release its criteria for rating the emerging single-family rental securitization market. The criteria come four months after Moody’s rated Invitation Homes 2013-SFR. The rating agency awarded $278.7 million in triple-A ratings for the largest tranche of the deal. “A slowly improving economy will boost...


March 14, 2014 - Inside MBS & ABS

SCOTUS Agrees to Review MBS-Related Tolling, Decision Could Give Investors More Flexibility

The U.S. Supreme Court has added two more lawsuits to its growing list of securities cases by agreeing to take up an IndyMac MBS suit. In Public Employees’ Retirement System of Mississippi v. IndyMac MBS Inc. et al, SCOTUS has agreed to consider whether the filing of a class-action lawsuit tolls the three-year statute of repose under the Securities Act of 1933 or whether the statute is an absolute bar that cannot be suspended. Like a statute of limitations, a statute of repose cuts off...


March 14, 2014 - Inside MBS & ABS

Mortgage Securitization Rates Edged Higher in 2013 Despite Growth of Non-Agency Originations

The residential MBS issued in 2013 equaled 78.5 percent of primary market originations, the highest securitization rate since 2010, according to a new Inside MBS & ABS analysis. The mortgage securitization rate typically moves higher when primary-market originations are declining because of the time lag between loan closing and MBS issuance. Last year started with a bang – $560 billion in new originations – and ended with a whimper, $305 billion. In the conventional conforming market, Fannie Mae and Freddie Mac MBS issuance – even after excluding loans that were more than three months old when they were securitized – represented...[Includes one data chart]


March 14, 2014 - Inside MBS & ABS

Thanks to Declining MBS Production and Lower Bonuses, Some Wall Street Traders are Looking at Greener Pastures

A Morgan Stanley managing director, Brian Wornow, recently departed as head of the firm’s trading desk, but he is hardly alone among Wall Street traders who are weighing their options amid rapidly declining MBS production. According to Wall Street executives and lenders that feed their trading desks, there are other concerns about lower-than-expected bonuses this spring and an unwillingness on the part of some established firms to take risks in the mortgage market, particularly when it comes to new jumbo mortgages and other non-agency vehicles. Sources contend...


Poll

What do you think is the biggest hurdle to meeting the new QM standards in the CFPB’s ability-to-repay rule?

A debt-to-income (DTI) cap of 43%.

48%

A 3% cap on points and fees.

29%

An interest rate cap of the average prime offered rate (APOR) plus 1.5%.

23%

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