OIG Identifies Major Management Challenges Confronting the CFPB. The CFPB’s Office of Inspector General identified a handful of major management challenges before the bureau which, if left unaddressed, will probably hamper the CFPB’s accomplishment of its strategic objectives. The first challenge for the bureau is ensuring an effective information security program, the OIG said in a new report. Information security presents a challenge to the CFPB “due to the advanced persistent threat to the government’s information technology infrastructure from outside governments and organized groups,” said the OIG. Another major hurdle is building and sustaining a high-performing and diverse workforce. This is an issue for the bureau “due to competition from other employers for the highly qualified staff with specialized skill ...
Sources told IMFnews that one large loan origination system (LOS) vendor was struggling to make programming deadlines ahead of the TRID rule, a situation that had caught the attention of the CFPB.
New issuance of residential MBS and non-mortgage ABS fell slightly during the third quarter of 2015, but the market remained well ahead of the pace set last year. A new Inside MBS & ABS analysis shows a total of $396.99 billion of MBS and ABS were issued during the third quarter, down 6.1 percent from the previous quarter. That total does not include commercial MBS or multifamily securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. On a year-to-date basis, total MBS and ABS issuance was...[Includes two data tables]
Fannie Mae and Freddie Mac continued to tap investor interest in credit-risk transfer transactions over the last week or so, with each company announcing another deal involving more support from various elements in the insurance and reinsurance sectors. Last week, Fannie announced it has completed its latest Credit Insurance Risk Transfer transaction, which shifts credit risk on a pool of loans to a panel of reinsurers. In CIRT-2015-3 which became effective Aug. 1, 2015, Fannie retained...[Includes one data table]
The much-anticipated $150 million nonprime MBS deal from Angel Oak Mortgage Solutions appears to have hit a brick wall with concerns arising over representations and warranties on the transaction, according to one high-level source who claims to have knowledge of the deal. Both Angel Oak and the underwriter, Nomura Securities, this week once again did not return several media inquiries on what might have gone wrong. Originally, the bond – a privately issued transaction – was slated for sale to investors sometime in September but never came off. The source, who spoke to Inside MBS & ABS under the condition his name not be used, said...
A memo issued by the Internal Revenue Service this year regarding the tax treatment for certain real estate mortgage investment conduits has been a boon for investors in nonperforming loans, according to William Cejudo, a partner at the law firm of Clifford Chance. At the recent ABS East conference sponsored by Information Management Network in Miami, Cejudo provided some background on Technical Advice Memorandum 2015-17007, which was issued by the IRS in May. The memo covered a life insurance company’s formation of a REMIC that held impaired non-agency MBS. “It’s...
Issuance of ABS backed by leases on small/mid-ticket equipment has rebounded since the financial crisis to levels last seen 15 years ago. However, industry participants suggest that loan-level disclosure requirements and mandatory risk-retention could limit activity in the sector going forward. At the recent ABS East conference produced by Information Management Network in Miami, Du Trieu, a senior director at Fitch Ratings, said issuance is increasing due to the improving economy and investor demand. “The collateral is business critical and income producing,” he added. Nearly $12.0 billion in small/mid-ticket ABS was issued...
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