As default rates on vintage non-agency MBS have improved, performance and investor proceeds this year will largely be based on servicers’ actions, according to Standard & Poor’s. Loss mitigation, work-out timelines and other servicer behaviors are of particular concern for investors. S&P said its outlook for performance of vintage non-agency MBS is stable. Feedback from servicers indicates that the number of new loan modifications on mortgages in non-agency MBS this year will be near levels seen last year and well below activity in 2010. Instead of quantity, S&P said, servicers have focused on quality. “It appears...
Although it's unlikely that Fannie Mae and Freddie Mac will engage in principal reductions anytime soon, a new report from CBO says it could do some good.
Will investors in GSE stock sue the federal government for "sweeping" earnings out of Fannie Mae and Freddie Mac? Meanwhile, PennyMac worries about its "Countrywide" problem.
The overall picture for mortgage delinquency and foreclosure activity generally is continuing to improve, despite some bumps in the road in a number of states. The mortgage delinquency rate increased to a seasonally adjusted rate of 7.25 percent at the end of the first quarter of 2013 – up 16 basis points from the fourth quarter of 2013, but down 15 basis points from one year ago, according to the Mortgage Bankers Association’s latest National Delinquency Survey, released late this week ...
One of the things that is unusual about this housing recovery is the extent to which it has been supported by investors – and not just individuals looking for rental property. Institutional investors have jumped into the rental home market in a way not seen before, and that is benefitting some industries you might not expect, or in ways you may not have anticipated. “In traditional housing recoveries, individuals and households provide the bulk of the demand the market needs to rebound,” said ...
Officials at Ocwen Financial were highly critical of the accounting methods used by other servicers that have acquired significant holdings of mortgage servicing rights recently. Ocwen might also soon have more cash than necessary for its planned acquisition opportunities, with officials considering initiating a stock buyback. William Erbey, Ocwen’s chairman, said his company is considerably less leveraged than other servicers. He noted that Ocwen carries most of its MSRs at market value rather than ...
Raising capital for privately held nonbank lenders that want to grow their holdings of residential mortgage servicing rights – or get into the market – has been mostly a dormant business since the housing bust of 2008, but Steadfast Capital hopes to change all that. And the newly launched company isn’t just raising capital through equity and structured debt offerings – it plans to invest alongside the lenders it’s working for. “We have a willingness to invest in every deal,” said Steadfast president, CEO and founder David Fleig. “It’s important to us.” Presently, Steadfast is talking...
RSS