Two new reports from Fitch Ratings, taken together, indicate a modest weakening in the collateral backing U.S. auto ABS deals is continuing, with perhaps a temporary reprieve thanks to short-term cash flow positives for consumers, mostly tax refunds and lower gasoline prices. Still, the overall outlook is positive. U.S. prime auto ABS collateral has been marginally weakening in the last few years, most recently because of amped-up competition among auto finance companies, Fitch said in a report out this week, based on transactions issued between 2007 and fourth-quarter 2014. “The quality of prime auto loan securitized pools was...
The majority of the 9.3 million borrowers who lost their homes between 2006 and 2014 will likely become eligible to re-enter the home purchase market within the next nine years, according to an analysis by the National Association of Realtors. However, only about a quarter of them are expected to actually return to the market. “The extended time needed to repair credit scores or save for a downpayment, combined with other overlapping post-distress factors on credit quality, such as ...
Freddie Mac, announced this week its first non-performing loan auction this week that primarily caters to smaller investors. The Extended Timeline Pool Offering of deeply delinquent NPLs gives investors who may need more time to secure funds for bidding a longer timeframe to do so. The loans for sale, all based in Miami-Dade County, FL, have an aggregate unpaid principal balance of $35 million.Having smaller pool sizes and a longer marketing timeframe differentiates the EXPO initiative from Freddie’s standard pool auctions. “This is intended to provide smaller investors extra time to secure funds to participate in Freddie Mac NPL auctions,” said the GSE. Qualified buyers have until June 2, 2015, to bid on the loans and the...
The outstanding supply of Fannie Mae and Freddie Mac single-family servicing contracted slightly during the first quarter of 2015, but that didn’t stop a number of nonbank servicers from continuing to grow.The two GSEs had a total of $4.015 trillion of servicing attached to mortgage-backed securities at the end of March, according to a new Inside The GSEs analysis of MBS disclosures.That was down 0.1 percent from the fourth quarter of last year, although the MBS data usually don’t match aggregate disclosures made by the GSEs themselves and they don’t include non-securitized loans. The top five GSE servicers all saw their portfolios decline in early 2015. The biggest drops in percentage terms were by Chase Home Finance, down...(includes one data chart)
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