With just over 4.5 million mortgage borrowers potentially affected by hurricanes Harvey and Irma, a secondary market is beginning to develop for mortgages that were originated and closed prior to the storm – but had not yet been placed into a security. According to bidders in the market, the early action focuses on loans that are “stuck” on warehouse lines. But the mortgages cannot be securitized until the property (if damaged) can be brought up to code and re-inspected ...
Nearly all of the securitized loans which failed to meet qualified-mortgage standards that took effect in 2014 are holding up well, and the MBS credit enhancement should be enough to handle any problems that emerge in an economic downtown, according to a new report from DBRS. The credit rating service did an analysis of the collateral and performance trends associated with the 20 securitizations backed by substantial numbers of non-QM loans that have been ... [Includes one data chart]
Maintaining the government MBS guarantee and the agency to-be-announced market is vital to a reformed housing-finance system, according to industry trade groups testifying during a House Financial Services Subcommittee hearing this week. Kevin Chavers, a managing director at BlackRock speaking for the Securities Industry and Financial Markets Association, said the cost of credit would go up without a government MBS guarantee, and banks would not be able to ...
Joshua Rosner, managing director of Graham Fisher & Co., said his discussions with Trump officials and members of Congress suggest that the administration’s reform principles won’t be released until early next year…
A handful of shareholder lawsuits challenging the government’s net worth sweep of Fannie Mae and Freddie Mac earnings have landed at the Supreme Court of the United States, asking the top court to review the constitutionality of the Federal Housing Finance Agency. Back in September, the FHFA filed a motion to dismiss in Atif Bhatti, et al., vs. The Federal Housing Finance Agency, stating that the plaintiffs lack standing to bring claims of their alleged injuries being related to ...
CRT deals may be popular with legislators since they “de-risk” Fannie and Freddie, but over the long haul the transactions reduce profits for the GSEs, or so critics have charged…
Two regional banks posted varied results in terms of jumbo originations in the third quarter of 2017. Flagstar Bank boosted its production while First Republic Bank’s originations fell on a quarterly basis and were up compared with the third quarter of 2016. Flagstar had $2.90 billion in jumbo originations in the third quarter, a 31.8 percent increase from the previous quarter and up 61.1 percent from the third quarter of 2016. Officials at Flagstar noted that the bank’s jumbo originations were ...
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