The performance of U.S. residential MBS keeps getting better, thanks mostly to favorable economic conditions, but the effects of greater regulatory oversight and intervention can be positive or negative, and sometimes both, depending on what hat a participant in the secondary market wears, according to experts at Moody’s Investors Service. “RMBS performance continues to improve, and that’s mainly because of the confluence of two factors: fewer borrowers are becoming delinquent for the first time because of the economy, and re-default rates on loans which have been modified – which is a significant share of the population of private-label MBS loans – continue to be stable,” said Youriy Koudinov, vice president and senior credit officer at Moody’s. “The second point we want to convey is...
The Collingwood Group, a Washington-based consultancy that built its practice on Ginnie Mae work and issues tied to the government-sponsored enterprises, has received approval from the Financial Industry Regulatory Authority to open a broker/dealer unit. The new division is called Collingwood Capital Advisors and will be headed by Mark DeGennaro, who joined TCG as a managing director in February 2011 to head what was then a new effort to build the consultancy’s hedge fund/private equity group. Although Collingwood Capital is now a registered broker/dealer, it will not be involved...
The non-agency MBS market sputtered to its weakest new issuance volume in a year during the third quarter of 2015, according to a new market analysis and ranking by Inside MBS & ABS. A total of $9.43 billion of non-agency MBS were issued during the third quarter, down 39.7 percent from the second quarter. Thanks to a strong start in the first half of 2015 – and weak new issuance during the same time last year – year-to-date production was up 47.5 percent from the first nine months of 2014. The two mainstays that have been propping up non-agency MBS issuance have been...[Includes two data tables]
With a strong fourth quarter, jumbo MBS issuance in 2015 could nudge past the post-crisis high set back in 2013, when $13.12 billion of these deals came to market.
Private investors in Fannie Mae and Freddie Mac stock are raising concerns about the expansion of risk-transfer activity at the two government-sponsored enterprises, warning that it should not be viewed as the answer to housing reform. The credit-risk transfer programs are often cited as a path to housing finance reform because they bring new private capital to the mortgage business, laying off some of the risk held by the GSEs and, ultimately, by taxpayers. “Some have suggested...
Stonegate Mortgage, Indianapolis, a publicly traded nonbank that recently underwent a management change, is considering takeover offers, according to industry advisors familiar with the situation. Although the company declined to comment, it appears that at the very least it’s considering selling some of its branches. At the same time, sources contend that certain branch managers are trying to cut separate deals with competitors. Firms looking to take over those branches include...
In the wake of large losses and insurance claim discrepancies stemming from the financial crisis, the government-sponsored enterprises and mortgage lenders are set to reap the benefits of new private mortgage insurer standards that formally take effect Jan. 1, 2016. Much tighter MI underwriting, coupled with improved insurer due diligence and stringent capital requirements, will improve claim payouts on defaulted loans, according to a recent report by Moody’s Investors Service, adding that policies written under updated GSE requirements will result in lower losses on the GSEs’ risk-sharing transactions and master insurance policies. The updated requirements for master policies give...