Ginnie Mae set new monthly and quarterly production records during the third quarter of 2016, leading the agency MBS market to a huge 24.6 percent increase in new issuance, according to a new market analysis and ranking by Inside MBS & ABS. The three agencies produced $428.36 billion in new single-family MBS during the third quarter. Fannie Mae and Freddie Mac actually had bigger increases from the second quarter, but Ginnie was the star of the show. Ginnie recorded...[Includes two data tables]
Non-agency MBS investors looked to the practices of the government-sponsored enterprises when establishing the standards for a deal agent, according to Alessandro Pagani, a portfolio manager and head of securitized assets at Loomis Sayles. “The GSEs were very effective in enforcing their rights as owners of the collateral; they had access to information and real enforcement power to put back loans that needed to be put back and direct servicers,” he said at the recent ABS East conference produced by Information Management Network. The Deal Agent Committee released...
Annaly Capital Management, the nation’s largest real estate investment trust specializing in the residential MBS market, continues to take a close look at one of its more recent acquisitions, Pingora Loan Servicing, with no word yet on its plans for the unit. Annaly took control of Pingora this past summer when it officially closed on the purchase of Hatteras Financial, the parent of the servicer. Before the purchase, Annaly had...
Affiliates of New Residential Investment this week issued a $345.0 million ABS backed by excess spread from mortgage servicing rights on non-agency mortgages. The deal appears to be the first of its kind to receive a credit rating. Morningstar Credit Ratings assigned a BBB rating to NRZ Excess Spread-Collateralized Notes 2016-PLS2. With MSRs, excess spread consists...
The post-crisis market environment that fueled the mortgage loan buyback dynamic continues to improve, and with it, the business relationships between lenders, investors and the government-sponsored enterprises. However, the repurchase and indemnification phenomenon has not gone away and is unlikely to do so for the foreseeable future. That means market participants need a comprehensive strategy to limit their exposure to litigation and, when that fails, to restrict the damage that does ensue, according to some top industry attorneys. This may be particularly important for correspondent lenders. “In order to go ahead and get a good perspective for what your company’s potential risk is, how do you go...
The Milken Institute suggests simply amending the charters of Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Housing Finance Agency for a smooth transition toward a new secondary mortgage market. Those changes include turning the government-sponsored enterprises into mutuals owned and operated by their seller-servicers and making Ginnie Mae a stand-alone government corporation. Amending the charters could accomplish a wide range of objectives that have eluded legislators and policymakers since the conservatorships, the authors said. Michael Bright, director in the Milken Institute’s Center for Financial Markets, and Ed DeMarco, senior fellow at the institute and former FHFA acting director, said...
The share of adjustable-rate mortgages held in portfolio hit an exceptionally high level in the second quarter of 2016, according to a new analysis by Inside Nonconforming Markets. An estimated $53.00 billion in ARMs were originated in the second quarter of 2016 and $4.69 billion in ARMs were included in mortgage-backed securities issued during the period. The ARM securitization rate in the second quarter was 8.8 percent, down from 13.9 percent ... [Includes two data charts]
While delinquencies on nonprime, non-qualified mortgages originated in recent years have been low, lenders note that servicing these loans requires unique efforts. How borrowers are welcomed by the servicer is seen as particularly important. Daniel Perl, CEO of Citadel Servicing, said Citadel’s borrowers receive three or four phone calls from the servicer within the first 20 days of origination. “We want people to understand that we’re here to help,” Perl said during a recent webinar ...
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