MBS, ABS Issuance

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

August 21, 2015 - Inside MBS & ABS

Innovation in Non-Agency MBS Market with Deal Backed By Non-QMs, Improvements to Reps and Warranties

Issuers of non-agency MBS injected some variety into the market in recent weeks with a deal backed solely by non-qualified mortgages and improvements to the representations and warranties on a jumbo MBS. Lone Star Funds issued a $72 million non-agency MBS backed mostly by non-QMs originated by Caliber Home Loans, a lender owned by the private-equity firm. Bloomberg first reported on the deal, which was priced on Aug. 7. Details on COLT 2015-A have been...


August 14, 2015 - Inside Mortgage Trends

Will Nonbanks Follow loanDepot Into Seconds?

loanDepot, LLC, made a big splash in the market this week, becoming the first nonbank lender to begin making ‘A’ paper second liens since the housing bust. The Irvine, CA-based lender fully expects it may soon have competition, but believes by being the first in, it will have a leg up on whichever players enter the fold. However, a quick call to a handful of nonbanks turned up...


August 14, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


August 14, 2015 - Inside MBS & ABS

U.S. Timeshare ABS Delinquencies Now at Lowest Level in Eight Years, More Smooth Sailing Ahead

The trajectory of delinquencies for U.S. timeshare ABS is continuing its downward trend, and issuance is expected to be near or perhaps even exceed last year’s level, with solid prospects for continued stable growth throughout the rest of the year, according to a consensus of industry analysts. U.S. timeshare ABS delinquencies fell again in the second quarter of 2015 to their lowest level in eight years, the latest index results from Fitch Ratings show. Total delinquencies for the second quarter were 2.66 percent, down from 2.79 percent in the first quarter and 2.92 percent a year ago. The ratings service has seen...


August 14, 2015 - Inside MBS & ABS

Moody’s Proposes Changes to Commercial MBS Rating Criteria, Allowing for Looser Underwriting

Moody’s Investors Service late last week proposed changes to how it rates commercial MBS. The rating service, which has been lagging in rating the type of deals subject to the revision, said the changes will result in upgrades and more positive treatment of loans with high loan-to-value ratios. Moody’s proposed to recalibrate its benchmark LTV ratios and “refine” how adjustments are made to benchmark LTV ratios. The proposal would allow for lower subordination requirements. The changes would apply to ratings of multi-borrower large loan commercial MBS and single asset/single borrower commercial MBS. “The main objective of the proposed changes for North American securitizations is...


August 14, 2015 - Inside MBS & ABS

Appeals Court Revives FDIC Lawsuits v. MBS Issuers; NY Judge Nixes GE’s Motion for Summary Judgment

A federal appeals court in New Orleans has overturned a 2014 district court ruling, reviving two government MBS lawsuits that were initially dismissed because they were filed past the state’s established time limit. The Federal Deposit Insurance Corp.’s separate lawsuits against RBS Securities Inc., on one hand, and against Deutsche Bank and Goldman Sachs, were both filed on Aug. 17, 2012. The complaints alleged that the banks misled investors about the credit quality of the mortgage loans that backed $840 million in non-agency MBS. The district court’s decision to dismiss, however, turned on...


August 13, 2015 - Inside Mortgage Finance

Piggyback Second Mortgages Making a Comeback with Focus on Jumbo Loans

Piggyback mortgage financing structures appear to be creeping back into the market, a trend that some observers say could destabilize the industry. Before the financial crisis, many borrowers combined a first-lien mortgage for 80 percent of home value with a second lien of 10 percent or more in order to avoid paying private mortgage insurance. While many first-lien mortgages are still originated with a simultaneous second in recent years, the combined loan-to-value ratio of the two has been capped at 80 percent or less. “From what we’ve seen from lenders who are interested in expanding their customer base, there appears...


August 7, 2015 - Inside FHA/VA Lending

VA Securitization in Ginnie MBS Increases in 2Q but Not Like FHA

Sellers saw a modest increase in VA loans delivered to Ginnie Mae in the second quarter of 2015, most of which were streamline refinance loans, but FHA definitely took the cake, according to an Inside FHA/VA Lending analysis of agency data. Approximately $39.1 billion in VA purchase and refi loans were placed in Ginnie Mae pools in the second quarter, up 11.8 percent from the prior quarter. Of that amount, $20.9 billion were VA refinances, up 2.1 percent from the first quarter. Some 52 percent of the VA refis were originated in-house while correspondents accounted for 30.7 percent. Brokers brought in 17.3 percent of the securitized VA refi loans. VA purchase loans underlie an estimated $18.2 billion in Ginnie mortgage-backed securities in the second quarter, 48.4 percent of them retail. That number was up 25.5 percent from the previous quarter. VA loan correspondents were busy as well, accounting for ... [ 2 charts ]


August 7, 2015 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


August 7, 2015 - Inside MBS & ABS

New Multifamily Small Balance Loan Securitization Program Helps Freddie Finance Small Apartments

Freddie Mac guaranteed its first multifamily small balance loan securitization this week as part of its effort to better serve less populated markets and smaller apartment communities. The government-sponsored enterprise plans to guarantee approximately $108 million in this first series of SB Certificates. This is a new credit risk transfer comprised of multifamily MBS backed by small balance loans underwritten by Freddie and issued by a third-party trust. In these SB deals, Freddie is ...


August 7, 2015 - Inside MBS & ABS

Plenty of NPLs Are Being Securitized but Don’t Expect to See Any SEC Filings on Them

More issuers are stepping up to the plate by creating securities collateralized by nonperforming residential loans, but so far the action has mostly taken place in the private-placement market. “There have been a bunch of securitizations of NPLs lately,” one trader told Inside MBS & ABS, “but it’s all been Reg. 144 filings,” a reference to the Securities and Exchange Commission rule that allows for the public resale of restricted collateral if a number of conditions are met ...


August 7, 2015 - Inside MBS & ABS

Strong Execution for Freddie’s Non-Agency-MBS-Like Transaction, More Non-TBA Deals Expected from GSEs

Freddie Mac’s first Whole Loan Securities deal was met with strong demand from investors, according to industry analysts. The transaction differed in a number of ways from the risk-sharing deals the government-sponsored enterprises have issued, as its structure was more like a non-agency MBS. The $300.27 million WLS 2015-SC01 included senior tranches with a total balance of $278 million and credit enhancement of 7.50 percent. Investors could purchase the senior ...


August 7, 2015 - Inside MBS & ABS

Ginnie Sets a Monthly Issuance Record in July, Pulls a Rare Coup in Agency MBS Market

It doesn’t happen often in the agency MBS market, but Ginnie Mae last month took the yellow jersey away from Fannie Mae. Ginnie issued a record $45.54 billion of single-family MBS in July, the agency’s biggest monthly output ever. That was a 12.6 percent increase from June, and nudged past Ginnie’s previous biggest month, July 2009, when its issuers pumped out $44.84 billion of single-family MBS. And it beat Fannie’s $44.14 billion of ... [Includes two data charts]


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...


Poll

During the first half of 2015 all residential lenders originated a better-than-expected $805 billion of home mortgages, according to Inside Mortgage Finance. What do you expect in the second half?

Just as good. We like what we’re seeing.
Better. Applications are strong.
Worse. We’re worried about rates, seasonality.
A lot worse. The fourth quarter could be a killer.

vote to see results
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