The latest prime non-agency mortgage-backed security from Flagstar Bank will differ somewhat from two similar deals issued by the bank this year, according to presale reports released this week. The share of mortgages subject to due diligence was adjusted and there will be a higher share of mortgages in the deal that are eligible for sale to the government-sponsored enterprises. The pending $466.93 million Flagstar Mortgage Trust 2018-4 follows deals from the bank that closed in ...
The Trump administration is likely to play a more active role in reducing the footprint of the government-sponsored enterprises in 2019, according to administration officials and industry analysts. Mel Watt’s term as director of the Federal Housing Finance Agency is set to end in January, allowing Trump to appoint a new director. The new director will likely take actions that are aligned with the Treasury Department’s goals for Fannie Mae and Freddie Mac, according to industry analysts ...
A pending change to accounting standards could change the way banks price jumbo mortgages, according to industry analysts. Beginning in 2020, many banks will have to change their accounting methods to include a “current expected credit loss model.” The adoption timeline was recently set by federal banking regulators. The CECL model forces banks to make projections for lifetime losses on loans they hold and potentially increase reserves relating to the projected losses ...
The amount of jumbo mortgages handled by a large group of servicers increased in the first quarter, according to a new ranking by Inside Nonconforming Markets. The 30 servicers handled an estimated total of $1.05 trillion in jumbos as of the end of March, up 1.4 percent from the end of 2017 and a 13.5 percent increase from March 2017. Growth in jumbo servicing significantly outpaced trends in total mortgage debt outstanding. Some $10.65 trillion ... [Includes one data chart]
Expanded-credit products look to be a ray of sunshine in an otherwise gloomy mortgage market. Originations of the loans increased in the first quarter of 2018 while production in many other product categories declined, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $10.1 billion of expanded-credit mortgages were originated in the first quarter of 2018, up 3.1 percent from the previous quarter and a 13.5 percent ... [Includes one data chart]
It’s official: The Treasury Department’s goal is to reduce the footprint of Fannie Mae and Freddie Mac. Who says so? Treasury counselor Craig Phillips...
The share of interest-only loans in commercial MBS conduits has risen to near-peak levels last seen in 2007 as underwriting deteriorates, according to major credit rating agencies.
ABS issuers are boosting the quality of marketplace loans in new deals due to rising delinquency rates, but not enough to convince Fitch Ratings that such issuance deserves AAA ratings.
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