Sen. Shelby is an Alabama Republican with a populist streak who is no friend of the GSEs, but he may side with shareholders of the two companies who are getting shafted by Treasury “sweeps.”
The downfall of Community Home is intriguing: the servicer closed its Jackson office and had customers send payments to Las Vegas. From there, payments were sent to a location in Costa Rica, according to AP.
The Treasury Department will hold meetings with issuers of non-agency MBS in the coming months to pick their brains on how the government can assist in uncovering "new paths" to increase private investment.
While jumbo mortgage securitization is currently attractive to issuers, industry analysts suggest that volume will remain limited this year due to a number of factors.