Vintage prime adjustable-rate mortgages went delinquent at a rate 30 percent higher when they were securitized privately, according to an economist with the Federal Reserve System. The study was based on mortgages originated in 2005 and 2006, at the height of the aggressive underwriting in the non-agency mortgage market. “We find that private-securitized loans perform worse than observably similar, non-securitized loans, which provides evidence for adverse selection ...
In the jumbo MBS sector, mortgage firms issued $4.60 billion of bonds in 1Q, a hefty 20.3 percent increase from 4Q and more than triple the volume posed during the first three months of 2014.
Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center, is among those who support Treasury’s push to include a deal agent in the benchmark non-agency MBS.
Use of a deal agent in new non-agency mortgage-backed securities will help convince large investors to return to the market, according to industry participants. The benchmark non-agency MBS in the works with help from the Treasury Department will include a deal agent, according to Michael Stegman, counselor to the Treasury on housing finance policy. At a talk this week hosted by the Financial Services Roundtable and CoreLogic, Stegman noted that Treasury continues to ...
The latest jumbo mortgage-backed security from Two Harbors Investment is set to have the lowest credit enhancement levels of any deal issued this year, according to an analysis by Inside Nonconforming Markets. Strong performance and underwriting characteristics along with repeat issuance appears to have helped decrease credit enhancement requirements for the transaction. The $241.06 million Agate Bay Mortgage Trust 2015-3 received a preliminary AAA rating ... [Includes one data chart]
The Consumer Financial Protection Bureau’s ability-to-repay rule was an “over correction” in terms of income documentation standards, according to Peter Carroll, executive vice president for mortgage policy and counterparty relations at Quicken Loans. At a talk this week hosted by the Financial Services Roundtable and CoreLogic, Carroll said the ATR rule has limited Quicken’s originations of mortgages for borrowers who have significant income that’s accounted for outside of ...
LendingHome announced this week that it has originated more than $100 million in loans since launching a year ago, focusing on flexible financing options for investors with a wide range of credit characteristics. The firm is a marketplace lender, connecting borrowers with investors. To this point, LendingHome has focused its originations on bridge loans and loans for investor properties. Officials at the lender said LendingHome plans to offer nonconforming mortgages this year with ...
Ocwen Financial had a rough 2014, but officials at the nonbank suggest the company will be profitable in 2015 and beyond. Ocwen faces a number of outstanding issues, including questions from an independent auditor regarding the nonbank’s ability to operate as a going concern. Ocwen reported a preliminary net loss of $546.29 million in 2014 compared with net income of $310.42 million in 2013. Officials at the nonbank said the loss for 2014 incorporates the impact of ...
The Obama administration and the head of the Mortgage Bankers Association, among others, agree that the ongoing conservatorship of the government-sponsored enterprises is unsustainable. However, with a strong divide between political parties regarding the level of government support needed in a system that replaces Fannie Mae and Freddie Mac, GSE reform remains a notion years away from completion. “Market participants are truly uncertain about the government’s longer-term ...
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