Despite AEI’s findings, delinquencies on GSE loans continue to fall. In December, for example, Freddie’s single-family delinquency rate totaled 2.39 percent compared to 3.25 percent a year earlier.
The cost of mortgage compliance was a topic making the rounds at the recent ABS Vegas show in Nevada. Attendees, of course, wanted to know who might pay for all the new added costs.
“It’s nearly impossible to get the information to the right person to vote on it,” said Bill Moliski, a managing director at SG Capital and former managing director at Redwood Trust.
The market produced $4.94 billion of new non-agency MBS during the fourth quarter, according to a new Inside MBS & ABS analysis and ranking, the weakest output of the year.
Besides Freddie Mac and FHA, the three other main competitors for Fannie in the multifamily sector are life insurance companies, banks and conduit lending programs.
The consensus among speakers at the ABS Vegas conference this week appeared to be that the MBS market is unlikely to change significantly this year. “The status quo is comfortable,” said Larry White, an economics professor at New York University’s business school. Issuers of non-agency MBS are working on reducing the government-sponsored enterprises’ dominance of the secondary market for mortgages, but the chicken-and-egg problem persists. New non-agency issuance has ground to a standstill, and Congress has been slow to move housing-finance reform legislation. In the meantime, industry observers expect...
The Structured Finance Industry Group announced this week that it will convene a taskforce to establish standardized representations and warranties for new non-agency MBS. The “Project RMBS 3.0” effort will involve a wide variety of industry participants in an effort to attract investors to non-agency MBS. If the effort sounds familiar, that’s because the American Securitization Forum issued benchmark reps and warrants in 2009 as part of its Project Restart initiative. “We want to resolve these issues once and for all,” said Eric Kaplan, managing director of Shellpoint Partners and one of the leaders of Project RMBS 3.0, during this week’s ABS Vegas conference sponsored by the SFIG and Information Management Network. He said...
Non-agency MBS issuance declined by 30.6 percent from the third to the fourth quarter of 2013 as the plucky jumbo securitization sector ran out of gas. The market produced $4.94 billion of new non-agency MBS during the fourth quarter, according to a new Inside MBS & ABS analysis and ranking, the weakest output of the year. Although there were some gains in the scratch-and-dent and re-securitization sector – markets that are almost all private placements – production of jumbo MBS fell by 71.4 percent. Even with the late fizzle, 2013 produced...[Includes three data charts]
Credit Suisse recently filed notice with the Securities and Exchange Commission, stating that it now owns 5.4 percent of Chimera Investment Corp., a real estate investment trust whose forte is buying residential MBS. However, the investment comes at a time when a cloud is hanging over the REIT sector, especially MBS investing firms such as Chimera. Moreover, Chimera’s stock has been stuck at about $3 a share the past 16 months, mostly because it’s still wading through earnings restatements and has not been a timely filer of quarterly and annual reports with the SEC. As the company noted in one regulatory filing: “Our failure to be...
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