Due diligence firms led an effort to issue a draft proposal late last week that would establish a standardized approach for reviewing compliance with the TRID mortgage-disclosure rule. The effort organized by the Structured Finance Industry Group was met with praise by industry participants. “The draft proposal represents a significant step forward for developing an industry standard treatment of errors related to the new residential mortgage disclosure requirements,” Fitch Ratings said. TRID is industry shorthand for a new integrated disclosure rule that covers requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Third-party due diligence providers have identified...
The new refinance program being developed for Fannie Mae and Freddie Mac borrowers with high loan-to-value ratios will not be available for homeowners who have already used the Home Affordable Refinance Program, according to the regulator of the two government-sponsored enterprises. The Federal Housing Finance Agency this year directed Fannie and Freddie to develop a replacement program for HARP, which will sunset at the end of 2016. MBS investors have been concerned...[Includes one data table]
Payments were improperly allocated among tranches of a $644.12 million non-agency MBS issued in November 2014 for about a year before being addressed, according to the firms that placed ratings on the deal. RPMLT 2014-1 Trust was issued by Credit Suisse’s DLJ Mortgage Capital and backed by re-performing mortgages. The payment problems appear to be tied to improper reporting by Rushmore Loan Management Services, the servicer of the MBS, and Wells Fargo Bank, the securities administrator for the deal. Fitch Ratings said...
Mortgage securitization made a small comeback in 2015, but softness in the non-agency MBS sector and higher guaranty fees required by Fannie Mae and Freddie Mac still played a huge influence in the market, according to a new Inside MBS & ABS analysis. An estimated $1.210 trillion of newly-originated home loans were pooled in mortgage securities last year, representing 69.7 percent of the $1.735 trillion in new first-lien originations. That was up slightly from the 67.8 percent back in 2014, which ranked as the lowest securitization rate since 2004, when just 62.6 percent of new originations were securitized. One issue is...[Includes one data table]
The average daily trading volume in agency MBS climbed to $201.4 billion in February, the best reading in nine months and a sign that investors will still flock to government-backed products in times of uncertainty, especially extreme uncertainty. Late this week, market watchers expressed their concerns about the terrorist bombings in Belgium as well as continued worries about China’s slowing economy and sagging oil prices. In short order, they piled into MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. Barry Habib, who runs MBS Highway, a rate-lock service, told...
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