Compliance violations with a disclosure rule that the Consumer Financial Protection Bureau implemented in October continue to cause problems for non-agency mortgages in the secondary market. The CFPB and Fitch Ratings separately provided guidance recently regarding the so-called TRID integrated disclosure rule that could help industry participants get more comfortable with TRID. There have been reports that some buyers of non-agency mortgages have balked at ...

When’s the last time a regional or megabank bought a nonbank mortgage company? Wells Fargo? JPMorgan? BofA? Citigroup? Nope, none of them, that we can recall...

Legacy non-agency MBS issued before the financial market collapse in 2008 continue to spawn millions in lawsuits. In the Southern District of New York, Commerzbank AG, as an RMBS investor, recently sued Deutsche Bank, HSBC, Wells Fargo and the Bank of New York Mellon in their capacities as MBS trustees on deals that inflicted approximately $1.88 billion in losses on the German bank. Commerzbank claimed it suffered $750 million in losses related to BNYM’s alleged failures ...

Angela Klein, an attorney with the law firm Morrison & Foerster, said her firm has been talking to mortgage lenders that use big data about the risk and how little guidance there is about it.

A new statutory exemption for private resales of ABS and MBS imposes certain requirements that issuers may find difficult to meet, according to securities compliance experts. The provision is part of the “Fixing America’s Surface Transportation Act” (FAST Act), which President Obama signed on Dec. 4, 2015. Although aimed primarily at authorizing spending on highway and transit projects, the new law includes several provisions intended, among other things, to facilitate ...

Interest in the single-family rental market has increased since being introduced as a viable asset classes several years ago, but some say further growth may depend on the sector’s ability to significantly improve operating efficiencies. There have been 27 single-family rental securitizations to date. In 2015, issuance of single-family rental deals was $6.72 billion, up from $6.61 billion a year earlier, according to Morningstar Credit Ratings. Although capital expenses were higher than ...

Entities growing their purchase mortgage and MBS portfolios may be affected by a new accounting model for recognizing credit impairment, the second leg of the Financial Accounting Standards Board’s long-term financial instruments project. The Mortgage Bankers Association expects a release date either towards the end of the first quarter of 2016 or in the second quarter, barring unforeseen changes. “I have not seen transition rules exposed yet, but I suspect that there will be ...

By now the word is out: Certain unnamed secondary market investors are turning away mortgages because of compliance errors, expressing the opinion they do not want to be on the “liability hook” for any origination errors under the new integrated disclosure rule known as TRID. The Mortgage Bankers Association recently singled out a jumbo investor that’s been rejecting 100 percent of the loans offered by originators. The trade group declined to identify the investor, but other ...

Industry analysts project that the volume of collateralized loan obligations issued this year will decline compared with 2015 because of regulatory and other factors. Among projections for various MBS and ABS asset types by Standard & Poor’s, CLOs are the only securities expected to see a decline in volume in 2016 compared with last year. CLOs differ from many other structured finance products in that they involve a special purpose issuer that acquires a portfolio of commercial loans ...

Wells' lending performance stands in contrast to its closest JPMorgan Chase, which reported a 23.3 percent sequential decline in mortgage production for the period.