Declining home prices have MBS investors worried about potential losses and downgrades. Officials from rating services said their assessments include significant stresses.
In their first face-to-face meetings with Japanese investors since the start of the pandemic, Ginnie officials looked to assuage concerns over the U.S. housing crisis and drum up investor confidence.
Credit Suisse settles legacy non-agency MBS lawsuit; Fannie and Freddie to publish aligned social disclosures for single-family MBS; bank trade groups seek change in FHFA’s capital treatment relating to access of FHLBs; Ginnie portal to re-open Oct. 25; aviation ABS investors in holding pattern on collateral in Russia.
Issuance of new Ginnie Mae mortgage-backed securities fell 10% in the third quarter. Purchase-money activity climbed at both FHA and VA, but not enough to offset declines in loan mods and cash-out refinances.
Issuance of prime non-agency MBS declined by nearly 80% from the second to the third quarter. Expanded-credit MBS issuance also wavered, though at a much slower pace.
Bayview Asset Management and Verus Mortgage Capital separately started marketing non-agency MBS in the days after Hurricane Ian made landfall. Rating services that assessed the deals differed in their focus on potential damage from the hurricane.
An affiliate of Bayview Asset Management is set to issue its first jumbo MBS since December. Loans in the deal have seasoned for an average of 4.5 months and were sourced from a number of lenders.
A trial that started in September after years of delays ended with a settlement. Bank of America agreed to pay $1.84 billion to settle claims tied to non-agency MBS issued by Countrywide Financial prior to the 2008 financial crisis.