With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...
Another record year for Ginnie Mae MBS issuance plus strong volume in the Fannie Mae and Freddie Mac programs helped push total securitization of residential mortgages and non-mortgage ABS to a three-year high of $1.698 trillion in 2016. A new Inside MBS & ABS analysis shows that total MBS and ABS issuance – not including commercial MBS – was up 13.3 percent from 2015. Agency production of single-family MBS totaled $1.481 trillion in 2016, up 17.5 percent from the previous year. Over a third of that came from Ginnie, which set a new annual record with $507.5 billion in single-family MBS issuance. The non-agency MBS market was...[Includes three data tables]
The Federal Housing Finance Agency late last month issued two final rules that will give the Federal Home Loan Banks somewhat more flexibility in setting collateral requirements for advances and managing their acquired member assets (AMA). A new AMA rule was necessary because the Dodd-Frank Act requires financial regulators to remove references to ratings, which had been used in setting limits on their AMA programs, most of which involve purchases of mortgages from member institutions. Under the new rule, the FHLBanks will be able to choose their own models to determine credit enhancement requirements. The FHFA also deferred...
American International Group has announced the completion of the sale of its private mortgage insurance subsidiary United Guaranty Corp. (UGC) to Arch Capital Group Ltd. (ACGL), creating what could be the largest private mortgage insurance company in the world. On paper, the combined entity would account for 26.9 percent of the market, based on traditional flow business during the first nine months of last year. But lenders are expected to re-calibrate how they distribute their MI business and not all current UGC business will go to the merged unit. In fact, UGC saw...
PHH Corp., the Department of Justice and the Consumer Financial Protection Bureau have, in recent weeks, gone back and forth with the filing of briefs on multiple angles associated with the legal dispute the lender has had with the CFPB over alleged violations of the Real Estate Settlement Procedures Act. However, it looks like the separation of powers under the U.S. Constitution will play a more decisive role in the outcome than will issues related to RESPA, according to some top legal observers. PHH and the DOJ both submitted responses to the District of Columbia Circuit Court of Appeals on Dec. 22, the deadline set by the court. The government is seeking an en banc review by the full appeals court of a ruling by a three-judge panel. In its brief, the mortgage lender said...
Regulators are working to get a better understanding about the ownership of mortgages, particularly for the span between origination and final funding, according to the Office of Financial Research. “Regulators now collect origination data and loan performance data about much of the home mortgage market,” the OFR said in its recently published 2016 financial stability report. “However, they do not collect data about ownership of a mortgage between origination and final funding. Information on this short phase in the life of a loan is needed for a full picture of risks.” The OFR, an office of the Treasury Department that was established by the Dodd-Frank Act, noted...
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