Credit Suisse sold two warehouse facility-backed securities this week totaling $800.0 million, according to Moody’s Investors Service. The rating service placed A2 ratings on the Mortgage Repurchase Agreement Financing Trust Series 2016-1 and Series 2016-2 transactions. Much like a warehouse facility security issued by Jefferies in May, Moody’s said the MRAFT securities are structured with two legs of “back to back” repurchase agreements. The first leg consists...
A total of $333.1 billion of residential MBS backed by freshly originated home loans were issued during the second quarter of 2016, a 30.3 percent increase over the first three months of the year. But that trailed the 34.2 percent surge in primary-market originations during the same period. The result was a further decline in the mortgage securitization rate, from 67.3 percent in the first quarter to 65.3 percent in the second, according to a new Inside MBS & ABS analysis. It marked the lowest securitization rate since 2004, when the non-agency MBS market was just beginning to take off. The biggest decline was...[Includes one data table]
Manufactured housing advocates are pushing for more government-sponsored enterprise support for manufactured lending, especially for chattel loans that are not considered mortgages because the loan is not secured by a dwelling and land. The issue has gathered steam as the Federal Housing Finance Agency works to finalize a “duty-to-serve” regulation for Fannie Mae and Freddie Mac that focuses on mortgage financing for very low-, low- and moderate-income families in rural areas and manufactured housing. Back in May, the Manufactured Housing Institute and representatives from both GSEs had discussed...
All three major mortgage-production channels posted significant gains in volume from the first quarter of 2016 to the second, but retail posted the biggest increase. According to a new Inside Mortgage Finance ranking and analysis, an estimated $300 billion in first-lien mortgages were originated through retail platforms during the second quarter, including traditional brick-and-mortar offices and consumer-direct efforts. That was up 36.4 percent from the first three months of the year, and a scant 1.4 percent higher on a year-to-date basis. The retail share edged up to 58.8 percent, the highest it’s been in two years. Wells Fargo remained...[Includes four data tables]
Fannie Mae and Freddie Mac introduced a new impasse and management escalation process this week as a middleman between the normal loan dispute appeal process and the final independent dispute resolution (IDR) process for seller/servicers. The government-sponsored enterprises said they hope to resolve as many disputes as possible before any IDR process begins. The GSEs introduced...
Rising costs for mortgage servicing and more frequent transfers have become key issues for the industry, according to panelists at a seminar hosted by the Urban Institute and CoreLogic last week. Ed DeMarco, former acting director of the Federal Housing Finance Agency and now a senior fellow at the Milken Institute, said that mortgage servicing compensation has not changed in decades as the servicing industry itself has undergone what he called “profound changes.” He noted...
New disclosures on risk-sharing transactions from Freddie Mac provide some details on the automated valuation model used by the government-sponsored enterprise to determine home prices and loan-to-value ratios. Freddie’s AVM – Home Value Explorer – provides home price valuations that are a little higher than the S&P CoreLogic Case-Shiller Home Price Indices, according to analysts at Bank of America Merrill Lynch. The analysts based their findings on estimates of current LTV ratios that Freddie recently added to monthly loan-level disclosures on Structured Agency Credit Risk transactions. LTV ratios based on Freddie’s AVM were...
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