Analysts at DBRS anticipate some notable changes in the residential mortgage securitization market this year, mostly as a result of expected higher interest rates. “Despite a healthy housing market recovery, post-crisis non-agency RMBS issuance has remained stagnant for several reasons,” said Quincy Tang, managing director of RMBS structured finance, in a new research report issued early this week. In addition to the dominance of Fannie Mae and Freddie Mac and bank balance-sheet capacity, “a persistently low interest rate environment has rendered...
The need to preserve liquidity and transparency in the existing to-be-announced market was an important component of the Mortgage Bankers Association’s newly-released plan for housing finance reform, according to Deutsche Bank Securities. Jeana Curro, research analyst with Deutsche, said a handful of provisions in the MBA’s latest proposal stand out as improvements from the industry group’s previous ideas on how to reform Fannie Mae and Freddie Mac. She agreed...
Mortgage lenders that deliver loans to Fannie Mae and Freddie Mac mortgage-backed securities continued to do gradually more business with borrowers with lower credit scores, according to an exclusive new Inside Mortgage Trends analysis of MBS data. In 2016, 21.4 percent of purchase mortgages securitized by the two government-sponsored enterprises had credit scores ranging from 620 to 699. That was up from 20.6 percent in 2015 and 20.5 percent ... [Includes two data charts]
Lenders looking for originations as interest rates increase will likely have to put an emphasis on purchase mortgages. Seasoned loan originators with a track record of purchase-mortgage volume can help with that strategy, though retaining such LOs can be difficult because they are in demand. Matt Lind, a senior partner at Strategic Mortgage Finance Group, an advisory firm, noted that LOs often switch lenders, lured by incentives and higher compensation. He said nearly 60 percent of ...
Walter Investment Management Corp. has yet to release fourth-quarter results, but if its nine-month performance is any indication, it has some major challenges ahead. Through September, the publicly traded nonbank – the nation’s eighth-largest servicer via its Ditech unit – lost $506.9 million, some of it tied to non-cash writedowns on its mortgage servicing rights. But if revenues are any indication of future earnings, investors shouldn’t brace for too much good news in its ...
Staying on top of the multitude of documents involved in the process of originating a mortgage can help lenders avoid regulatory issues and increase returns, according to an analysis by Nationwide Title Clearing. The mortgage research and document-processing service provider detailed a number of issues with the so-called trailing-document process in a recent update to a white paper initially published in 2014. NTC said the white paper on document tracking and organization ...
Industry technology vendor DocuSign has tapped into some of the technological capabilities of Google – the G Suite collection of electronic tools, in particular – as part of a strategic initiative to digitize the mortgage closing process and sharply reduce the time it takes to close on a loan. “The broader idea for DocuSign – and Google Suite plays into this as well as the things that we’re doing with our ‘lead to close’ strategy – is wanting to take away any of the friction from completing ...
The bulk of the contributions for the MBS were aggregated by Invictus’ Verus Mortgage Capital affiliate. Servicing will be handled by Specialized Loan Servicing.
The two GSEs were placed in conservatorship in September 2008 by Treasury and the Federal Housing Finance Agency. At the time, their common and junior preferred shares were considered worthless.
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