MBS, ABS Issuance

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

February 5, 2016 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


February 5, 2016 - Inside MBS & ABS

Franchise/Royalty Securitizations Expected to Build as Investor Base Grows, New Structures Are Introduced

Securitizations backed by proceeds from franchises such as Domino’s Pizza and Dunkin Brands hit a record in terms of issuance volume in 2015. Industry participants suggest the market for such deals, known as whole-business securitizations, is set to expand due to growing interest from investors. There was more than $7.0 billion in WBS issuance in 2015, exceeding the issuance of the three prior years combined, according to Cory Wishengrad, a senior managing director and head of structured products origination at Guggenheim Securities. Wishengrad and others involved with structuring franchise/royalty securitizations spoke at a recent roundtable hosted by Standard & Poor’s. “The WBS sector has made...


February 5, 2016 - Inside MBS & ABS

Jefferies and Two Nonbank Lenders Team Up on Planned MBS Backed by Warehouse Facility for Agency Loans

Jefferies Funding is underwriting a securitization of a revolving warehouse facility for agency mortgages originated by two nonbanks. The $225.0 million Station Place Securitization Trust 2016-1 received provisional Aaa ratings this week from Moody’s Investors Service. The rating service said the transaction is based on a “back-to-back” repo structure, with the three classes of notes scheduled to be paid off one year after issuance. The proceeds from the sale of the notes will be used by the issuer to purchase eligible mortgages and participation certificates from the repo seller. The revolving warehouse facility will be sponsored...


February 4, 2016 - Inside Mortgage Finance

Analysts Suggest Tight Underwriting Prevented 1.2 Million Mortgages in 2014, Lenders Point to Buyback Uncertainty

If lenders used the seemingly sensible underwriting standards that were in place in 2001, some 1.2 million more mortgages would have been originated in 2014, according to estimates by the Urban Institute’s Housing Finance Policy Center. Laurie Goodman, director of the HFPC, said lenders have “plenty of room to safely ease credit.” An underwriting index from the HFPC suggests that originators are accepting little risk in terms of borrower or loan characteristics, hindering a recovery in the mortgage market and the broader economy. Lenders note...


January 29, 2016 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


January 29, 2016 - Inside MBS & ABS

Conduit CMBS Leverage Rising, Moody’s Finds, CRE Collateral Keeps Improving, S&P Says

The credit quality of U.S. conduit/fusion commercial MBS kept degrading during the fourth quarter of 2015, while conduit loan leverage is rising and is expected to continue to do so, according to a new report from Moody’s Investors Service. Conduit loan leverage as measured by the Moody’s Loan to Value (MLTV) ratio ticked upward from 118.2 percent in the third quarter last year to 118.9 percent in the fourth quarter. This is the third time in which that metric has topped the pre-crisis peak level of 117.5 percent, the ratings service said. Further, the conduit loan MLTV rose...


January 29, 2016 - Inside MBS & ABS

Securitization of Income-Property Mortgages Reached Post-Crash High in 2015 Thanks to Multifamily Boom

The surging multifamily housing market in the U.S. was a major factor in the huge increase in commercial MBS issuance last year, according to a new Inside MBS & ABS analysis. A total of $206.66 billion of income-property mortgages were securitized during 2015, a 22.6 percent increase from the previous year. It was the strongest annual output of commercial MBS since 2007, the year before the wheels fell off the non-agency CMBS market. New issuance rebounded...[Includes one data table]


January 22, 2016 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


January 22, 2016 - Inside MBS & ABS

MBS and ABS Issuers Face Reg AB2 Compliance Issues, Urge SEC to Continue to Delay Further Action on Disclosures

Issuers of MBS and ABS continue to address compliance issues with the Securities and Exchange Commission’s so-called Regulation AB2. Meanwhile, the Structured Finance Industry Group has urged the SEC to continue to delay further action on disclosure proposals that remain outstanding. In August 2014, the SEC published a final rule setting a variety of disclosure requirements for the structured finance market. Issuers of publicly registered MBS and ABS were required to comply with rules, forms and disclosures established by Reg AB2 by Nov. 23, 2015. Asset-level disclosure requirements will take effect Nov. 23 of this year. During a webinar hosted by the law firm of Mayer Brown late last week, Stuart Litwin, a partner at the law firm, said...


January 22, 2016 - Inside MBS & ABS

Non-Agency MBS Issuers Working to Deal with Risk- Retention Requirements, Seasoned Loans a Focus

About a month after risk-retention requirements took effect for newly issued non-agency MBS, industry participants continue to work on complying with the standards set by the Dodd-Frank Act. Non-agency MBS issued on Dec. 24, 2015, and beyond are subject to risk-retention standards. The standards will apply to other MBS and ABS asset types for deals issued on and after Dec. 24 of this year. The first jumbo MBS subject to risk-retention requirements is scheduled...


January 22, 2016 - Inside MBS & ABS

Vehicle Sector Bucked Overall Decline in ABS Issuance in 2015 as Credit Card Market Tanked

New issuance of non-mortgage ABS fell 6.6 percent last year even though the market’s biggest segment pushed to a new post-crash high, according to a new Inside MBS & ABS analysis. A total of $173.05 billion of non-mortgage ABS were issued in 2015, the second-highest annual output since 2008. The direction, however, was less encouraging. New issuance tumbled 17.1 percent from the third to the fourth quarter, sinking to $30.69 billion – the lowest three-month total in over three years. But with record sales in the U.S. auto industry, securitization of vehicle-finance contracts increased...[Includes two data tables]


January 15, 2016 - Inside FHA/VA Lending

HECM-Backed NPL Deal’s Strong Points Help Overcome Downside

The first rated securitization backed by nonperforming Home Equity Conversion Mortgage loans contains strong, credit-positive features that outweigh the credit risk associated with nonperforming loans, according to a Moody’s Investors Service analysis. The effect of some of these positive features on the performance of Nationstar HECM Loan Trust 2015-2, however, depends on whether Nationstar Mortgage remains as servicer for the transaction, said the rating agency. Nationstar has a servicer rating of B2/Stable from Moody’s and is also the transaction’s sponsor. Nationstar issued NHLT 2015-2 in November 2015 and by the end of December, the first remittance report showed strong initial performance. Credit enhancement to the Aaa (sf)-rated notes increased by 1.69 percent in the first month of operations, Moody’s noted. “As long as Nationstar continues to be the ...


January 15, 2016 - Inside FHA/VA Lending

Ginnie Mae Issuance Hits New High In Securitized VA, FHA, RHS Loans

Issuers of Ginnie Mae mortgage-backed securities pushed a record $435.80 billion of government-insured loans through the program during 2015, according to a new Inside FHA/VA Lending analysis and ranking. Last year’s total Ginnie MBS issuance topped the previous record of $429.50 billion issued during 2009. The $435.80 billion total for 2015 includes securitization of FHA home-equity conversion mortgages and other single-family loans guaranteed by FHA, the VA, and the Department of Agriculture rural housing program from Ginnie pool-level MBS data that are not truncated. Production in 2015 hit its high-water mark in the third quarter with $128.23 billion in issuance, and then fell 18.0 percent in the final three months of the year. Purchase mortgages continued to account for most Ginnie business in 2015, 58.0 percent of the agency’s forward-mortgage securitizations. But a huge factor in the ... [ Charts ]


January 15, 2016 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


January 15, 2016 - Inside MBS & ABS

Non-Agency MBS Issuance Neared Post-Crash High In 2015, But Seasoned Collateral Dominated Market

New issuance of non-agency MBS rose smartly in 2015, nearly matching the highest annual production volume since the financial market meltdown back in 2007. Some $61.60 billion of non-agency MBS came to market last year, a solid 13.9 percent increase from 2014, according to Inside MBS & ABS. This figure does not include Fannie Mae and Freddie Mac credit risk-transfer deals – which attract traditional non-agency MBS credit investors but are ... [Includes three data charts]


January 8, 2016 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


January 7, 2016 - Inside Mortgage Finance

GSE Business Volume Slumped in 4Q15 as Purchase-Mortgage Market Hit Seasonal Skid

New issuance of single-family mortgage-backed securities by Fannie Mae and Freddie Mac fell sharply in the fourth quarter of 2015 despite a December rebound in monthly volume, according to a new Inside Mortgage Finance analysis and ranking. The two government-sponsored enterprises issued $179.01 billion of single-family MBS during the final three months of 2015, a 19.9 percent drop from the third quarter. It was the weakest level of new business for the GSEs since the second quarter of 2014. A faltering purchase-mortgage market was...[Includes three data tables]


January 1, 2016 - Inside FHA/VA Lending

Ginnie Mae Securitization of USDA Loans Up During First Nine Months

A total of $13.6 billion of rural home loans backed by the U.S. Department of Agriculture were securitized during the first nine months of 2015, according to an Inside FHA/VA Lending analysis of agency data. An estimated $5.1 billion of USDA home loans were delivered into Ginnie Mae pools in the third quarter, up 22.8 percent from the prior quarter. In contrast, the nine-month securitization volume fell 4.4 percent from the same period of the prior year. Nine of the top 10 USDA loan securitizers reported quarter-over-quarter increases. Top-ranked Chase Home Finance maintained its lead over other USDA loan securitizers with $4.2 billion in loans securitized during the nine-month period, down 4.8 percent from the previous year and up 32.8 percent on a quarterly basis. Chase’s nine-month USDA volume translated into a 31.0 percent market share. Second-place Wells Fargo funneled $1.7 billion in USDA loans into ... [ chart ]


January 1, 2016 - Inside FHA/VA Lending

HECM Endorsements Up in 2015, Increase Due to Program Changes

FHA lenders funded $12.3 billion in new Home Equity Conversion Mortgage loans during the first nine months of 2015, up a hefty 22.2 percent from the same period in the prior year, according to Inside FHA/VA Lending’s analysis of agency data. Likewise, HECM endorsements increased 17.3 percent to $4.5 billion in the third quarter from $3.9 billion in the prior quarter. This was the highest HECM endorsements have been since the second quarter of 2013, when they totaled $4.1 billion. Purchase loans accounted for 85.8 percent of all HECM originations over the nine-month period. The majority of borrowers favored adjustable-rate HECMs over fixed-rate HECMs, which accounted for only 14.8 percent of HECM transactions. In addition, the initial principal amount at loan originations totaled $7.3 billion, up from $4.6 billion midway through 2015. The volume increase is attributable to program changes implemented ... [1 chart]


January 1, 2016 - Inside FHA/VA Lending

Ginnie Pools Likely to See Rising Share of VA Collateral in 2016

Investors should see a higher share of VA collateral in Ginnie Mae mortgage-backed securities pools due to increasing VA loan originations, according to Deutsche Bank analysts. Given their rising share of VA collateral, new Ginnie pools are likely to have worse convexity than most of those originated in 2015, analysts said. “VA loans tend to prepay faster than FHA loans when in the money as VA loans have larger loan sizes, higher FICO scores and a more efficient streamline refi program that requires a minimum three months seasoning,” they observed. In addition, analysts expect the population of younger veterans to surge approximately 36 percent over the next five years. “[As such], there will be a healthy supply of new VA originations eligible for pooling,” they said. As a result, the share of FHA relative to VA collateral in new Ginnie II pools will likely decrease, they said. Such a trend has manifested itself slowly as ...


Poll

A lot has been written lately regarding loan closing delays tied to the new TRID rule. What’s been the average delay at your lending shop, if at all? (Report in business days, not calendar.)

TRID has caused no delays whatsoever because we were prepared.

30%

1 to 4 days.

27%

5 to 10 days.

13%

11 to 15 days. It’s been a nightmare.

11%

We’re too embarrassed to tell you.

20%

Housing Pulse