Both Fannie Mae and Freddie Mac held onto their ample shares of mortgage-backed securities with a slight bump during the first quarter of 2013, according to a new Inside The GSEs analysis. The two GSEs issued a combined $355.8 billion in MBS during the first quarter, a 0.9 percent increase from the fourth quarter of 2012. Compared to the first three months of last year, Fannie and Freddie saw a 16.6 percent increase in MBS issuance. Between the two companies, Fannie and Freddie registered an abundant 76.0 percent share of new MBS during the period that ended March 31, 2013, up from 75.8 percent the two companies held during the fourth quarter of 2012 but lower than the 78.0 percent both GSEs held during the first quarter of 2012.
Many people in the mortgage lending and securitization sectors thought the controversial eminent domain plan pushed by Mortgage Resolution Partners was graveyard dead after suffering a few high-profile defeats in various locales throughout the country. They were wrong. Now, a number of interested industry parties are back on the defensive, trying to convince city officials in Richmond, CA, to abandon a new advisory arrangement with MRP and to discourage local government representatives in North Las Vegas, NV, to not reach a similar agreement with the firm. In both instances, the plan being advanced by MRP would involve...
Securitization of income-property mortgages jumped 23.0 percent from already strong levels during the first three months of 2013, according to a new Inside MBS & ABS market analysis. A total of $47.61 billion of commercial MBS were issued during the first quarter, including a variety of non-agency deals as well as multifamily MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. That was the strongest level since structured finance markets tanked in 2008. The previous post-crash high was...[Includes one data chart]
The Vertical Capital Income Fund is a publicly traded mutual fund whose stated goal is to buy whole loans from banks and nonbanks, providing an attractive yield to its investors. But will it ever get around to securitizing its holdings? For now, the answer to that question appears to be no, but it’s something the fund is looking into. “Let’s put it this way; we’ve discussed the possibility,” said Richard Mason, vice president of secondary marketing for the company. Part of Vertical’s problem is...
Moody’s Investors Service has come up with a monitoring approach to evaluating “tail risk” in non-agency MBS that pay scheduled principal and prepayments to the securities on a pro-rata basis and assessing the adequacy of the credit enhancement available to the rated securities. Tail risk is what might be described as the “end of life” risk of a disproportionately large loss (based on current balance of the pool) on the underlying pool at the end of a transaction’s term when few loans remain in the pool and credit enhancements, although high in percentage terms, may be very low in dollar terms. The proposed change in approach at Moody’s will mostly affect...
The commercial MBS market is starting to catch fire. Moreover, a new report from Fitch notes that commercial delinquencies continued to fall last year, a trend that will continue.
Consumer advocates also recommend that state policymakers pass legislation or implement regulation requiring servicers to adopt and engage in loss-mitigation practices.
The White House wants to change the HARP eligibility date, making more underwater borrowers eligible for the program, Inside Mortgage Finance has learned.
Despite little vocal, organized opposition, expected industry group support and bipartisan praise, industry observers on Capitol Hill say it is far from a given that the White House will follow through and nominate Moody’s Analytics’ Chief Economist Mark Zandi to a five-year term as the director of the Federal Housing Finance Agency. The buzz has died down considerably since the White House leaked Zandi’s name early last week in the latest trial balloon of potential nominees to replace Edward DeMarco, who has led the FHFA in an acting capacity since September 2009. However, there’s a growing feeling of certainty within the industry that if President Obama does in fact follow through and sends a name to the Senate for confirmation, it would be Zandi.
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