Issuance of new non-mortgage ABS dropped significantly from the second to the third quarter of 2018, although a few sectors saw increased volume, according to a new Inside MBS & ABS analysis and ranking of the market. [Includes two data charts.]
ABS issued as private placements tend to draw less demand from investors than deals registered with the Securities and Exchange Commission, but issuers have a number of incentives to bring deals as private placements, according to industry participants.
Fitch Ratings issued a commentary this week criticizing other rating services for the preliminary ratings they made on a non-agency MBS from Galton Funding. The company also suggested that it will increase its output of unsolicited commentary due to “late-cycle credit behavior.”
Although prepayment speeds on Ginnie Mae MBS are now at the lowest level since 2014, agency Executive Vice President Maren Kasper expressed persistent concerns about the matter in remarks at the annual convention of the Mortgage Bankers Association this week.
Freddie Mac recently confirmed that it will provide indirect financing of $51.3 million to Reven Housing REIT, a publicly traded company that owns and manages 824 single-family rental units.
The CEOs of Fannie Mae and Freddie Mac – one recently departed, the other soon to leave – told attendees at this week’s annual convention of the Mortgage Bankers Association that a number of good things came out of the 10-year conservatorship of the two government-sponsored enterprises.
The characteristics of MBS backed by reperforming and nonperforming loans are evolving as the housing recovery ripens. The supply of NPLs is declining while RPL MBS issuance looks to remain stable in the coming years, according to industry participants.
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