“It’s nearly impossible to get the information to the right person to vote on it,” said Bill Moliski, a managing director at SG Capital and former managing director at Redwood Trust.
The market produced $4.94 billion of new non-agency MBS during the fourth quarter, according to a new Inside MBS & ABS analysis and ranking, the weakest output of the year.
Besides Freddie Mac and FHA, the three other main competitors for Fannie in the multifamily sector are life insurance companies, banks and conduit lending programs.
Non-agency MBS issuance declined by 30.6 percent from the third to the fourth quarter of 2013 as the plucky jumbo securitization sector ran out of gas. The market produced $4.94 billion of new non-agency MBS during the fourth quarter, according to a new Inside MBS & ABS analysis and ranking, the weakest output of the year. Although there were some gains in the scratch-and-dent and re-securitization sector – markets that are almost all private placements – production of jumbo MBS fell by 71.4 percent. Even with the late fizzle, 2013 produced...[Includes three data charts]
The number of distressed residential loans backing non-agency mortgage securities dropped by 5 percent in the third quarter of 2013 and by 20 percent from the prior year. This trend, however, could lose some steam in the months ahead. According to the latest report from Morningstar Credit Ratings, clearing the distressed inventory in the non-agency MBS market might take a little longer because the pace of decline has slowed significantly. The number of liquidations has dropped by 39 percent, with approximately 891,000 properties with distressed mortgages still in inventory, it added. In addition, total distressed liquidation as a percentage of total paid-off loans continues...
Fannie Mae and Freddie Mac are likely to find the multifamily MBS space to be noticeably more competitive this year as increasing levels of private capital respond to improving market conditions, one top government-sponsored enterprise official suggests. One of the most influential factors that will determine how much volume the GSEs do in multifamily will be “more competition in the market in 2014 than we saw in 2013,” thanks to increasing levels of private capital, according to Manny Menendez, senior vice president of multifamily capital markets and pricing for Fannie. Besides Freddie and FHA, the three other main competitors for Fannie in the sector are...
Who at the GSEs (or at the Federal Housing Finance Agency) was responsible for telling Fannie and Freddie to set aside so much money for loan losses and were those assumptions way off base?
The Treasury Department’s point man on housing declared this week that the government has no appetite to expand the Home Affordable Refinance Program, and he reiterated past Obama administration pledges to cashier Fannie Mae and Freddie Mac. Michael Stegman, counselor to the Treasury on housing finance policy, outlined for attendees of the ABS Vegas conference the administration’s housing goals, including its opposition to any HARP eligibility tweaking and its continued support for housing finance reform.
Three House Democrats have added their own proposal to the growing list of legislative housing finance reforms that, in time, could pave the way for the government to sell off Fannie Mae and Freddie Mac while giving new purpose to the Federal Housing Finance Agency. The reform proposal by Reps. John Delaney (MD), John Carney (DE) and Jim Himes (CT) would establish a system of government reinsurance for eligible mortgage-backed securities. The idea is to leverage the government’s capacity and the market’s ability to price risk, they said.
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