The Royal Bank of Scotland last week announced a multi-million dollar settlement with the state of Illinois to resolve the bank’s alleged misconduct in its marketing and sale of risky MBS leading up to the 2008 financial crisis.
A final rule from the Federal Reserve regarding single-counterparty credit limits looks a lot better to the securitization industry than the proposed rule. Industry participants had warned that the rule proposed in March 2016 was overly broad, complex and unworkable.
Non-agency MBS investors might not be aware of the differences in representations and warranties provided by issuers of new non-agency MBS, according to Fitch Ratings. In a recent report, the rating service noted that issuers are diverging from standard practices in terms of “full” rep-and-warrant frameworks.
The average daily trading volume in agency MBS fell to $223.2 billion in June, a slight decline from the month prior, according to figures compiled by the Securities Industry and Financial Markets Association.
Ginnie Mae’s crackdown on certain issuers over loan churning – coupled with a backup in primary mortgage rates – has narrowed the prepayment speed gap between conventional and Ginnie-backed collateral, according to industry analysts.
MBS and ABS issuers were busy in the second quarter of 2018, generating $435.64 billion in new securities, according to a new analysis by Inside MBS & ABS. [Includes three data charts.]
The easing of qualified-mortgage standards under the Dodd-Frank reform bill could be credit negative for nonprime residential MBS backed by loans originated by nonbanks, Moody’s Investors Service said. But an industry expert disagrees.
The mortgage industry this week continued to look for a fix to the VA Interest Rate Reduction Refinance Loan mess, which has imperiled roughly $500 million worth of government product that is now ineligible for Ginnie Mae securitization.
Fannie Mae this week released details about a pilot program that explores an alternative to how private mortgage insurance is placed on loans the government-sponsored enterprise acquires.
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