JPMorgan Chase is preparing to issue a non-agency mortgage-backed security stocked entirely with loans eligible for sale to the government-sponsored enterprises. While Chase has long included GSE-eligible loans in its non-agency MBS, the deals generally also include non-agency jumbo mortgages. The mortgages in the $313.56 million deal largely look to be conforming jumbos. The loans have an average balance of $527,877. Fitch Ratings noted that the collateral attributes of the pool are ...
Issuance of non-agency mortgage-backed securities with prime jumbo loans and expanded-credit mortgages flourished in the first quarter of 2018, according to a new ranking and analysis by Inside Nonconforming Markets. Combined, $6.28 billion of such securities was issued, more than double the activity in the first quarter of 2017 and up 24.6 percent from the fourth quarter of last year. Some $4.23 billion of prime jumbo MBS was issued during ... [Includes one data chart]
Angel Oak Capital Advisors issued a $328.76 million nonprime mortgage-backed security this week, its biggest so far. Its previous high was a $210.45 million offering in July. DBRS and Fitch Ratings assigned AAA ratings to Angel Oak Mortgage Trust I, LLC 2018-1. The deal included credit enhancement of 35.6 percent on the senior tranche, somewhat lower than previous issuance from Angel Oak. Fitch said Angel Oak has strong underwriting and risk management practices, which ...
Certain types of MBS and ABS appear to have some wiggle room regarding risk-retention requirements. According to industry lawyers, many single-asset/single-borrower (SASB) commercial MBS can be structured to avoid risk retention and the rules might not apply to certain esoteric ABS.
Barclays Capital and its affiliates will pay $2.0 billion to settle claims brought by the U.S. Department of Justice related to the company’s underwriting and issuance of non-agency residential MBS before the financial crisis.
Morningstar Credit Ratings announced the withdrawal last week of unsolicited ratings the firm had placed on some non-agency commercial MBS. While regulators have encouraged the publication of unsolicited ratings, investor demand has been tepid.
As rates continued to rise early this year, the average daily trading volume in agency MBS topped $239.2 billion in February, the best showing in at least 14 months, according to figures compiled by the Securities Industry and Financial Markets Association.
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