New issuance of non-agency commercial MBS fell dramatically during the second quarter of 2016, more than offsetting a modest uptick in the production of agency multifamily MBS, according to a new Inside MBS & ABS analysis. Non-agency CMBS issuance fell to just $12.87 billion in the second quarter, a 29.5 percent drop from the first three months of the year. It was the lowest quarterly output of new CMBS since the second quarter of 2012, when just $10.63 billion of new securities were issued and the market was still finding its legs after the financial meltdown. New CMBS issuance has been...[Includes one data table]
When rates plunge at the end of a given quarter – as they did in June – it usually translates into large hedging losses for Fannie Mae and Freddie Mac. But this time around, there seems to be less chatter about the topic – and a reduced level of anxiety. Next week, both government-sponsored enterprises will release second-quarter results and all eyes will be on the line item that reveals the net gain or loss from their derivatives, the instruments the two use to hedge their MBS positions. In the first quarter of this year, Freddie posted...
Lenders originating agency mortgages are seeing plenty of demand in the secondary market, according to panelists at the California Mortgage Bankers Association’s Western Secondary Market Conference this week in San Francisco. “Capital is searching for a home,” said Rob Branthover, a managing director at Mortgage Industry Advisory Corp. He noted that many investors are focusing on agency mortgages. Mike Duncan, a senior hedge manager at Compass Analytics, said...
The Sixth U.S. Circuit Court of Appeals overturned a lower court decision that had cleared Freddie Mac of charges that it misled investors about its involvement in the subprime mortgage market. The lawsuit was filed in 2008 by the Ohio Public Employees Retirement System, which claimed Freddie made false public financial statements that hid its exposure to risky loans. The fund alleged that it lost more than $27.2 million as the value of Freddie stock plummeted. OPERS said...
Look for the Federal Reserve to repeat last year’s performance and raise interest rates one quarter of one percent in December, according to some supporters and critics of the U.S. central bank, enabling the Fed to say it did, in fact, lift interest rates this year. During its meeting in Washington, DC, this week, the Fed once again, as expected, opted to hold rates unchanged and did not tip its hand about a future move, although some market participants came away with the impression an increase in September is a little more likely than had been the case after the central bank’s last meeting. The Federal Reserve’s Open Market Committee last raised...
EverBank Financial announced this week that it’s in “advanced discussions” with a “well-respected financial services company” that plans to acquire the depository. Everbank ranked 15th among jumbo lenders as of the first quarter of 2016 with $725.0 million in such originations during the quarter, according to Inside Nonconforming Markets. The company formerly known as NovaStar filed for Chapter 11 bankruptcy last week, citing ... [Includes four briefs]
The FHA and VA are expanding their guarantees to residential properties with superior PACE (Property Assessed Clean Energy) liens, but certain clarifications must be made before the market will really open up, according to legal experts. Under newly issued guidance, the FHA and the VA will begin insuring mortgages on qualified residential properties encumbered by PACE liens in support of a White House initiative to make clean energy and energy upgrades available to low- and moderate-income homeowners. PACE programs are available in 19 states and in the District of Columbia and have enabling legislation in 32 states, plus Washington, DC. Such programs provide financing for home improvements that enable homeowners to make energy and water use more efficient and less costly. The financing, however, is not like a traditional loan product. Homeowners repay the PACE financing through a ...
Fannie Mae has announced new enhancements to its 97 percent loan-to-value mortgage product, including acceptance of FHA-approved housing counseling, to help attract more borrowers.The improvements would expand access to HomeReady, which allows borrowers to pay as little as 3 percent down on a home purchase. The 3 percent may include income from non-borrower household members. Fannie said it would accept one-on-one, pre-purchase counseling from providers that have been approved by the Department of Housing and Urban Development for FHA borrowers. The goal is to help conventional borrowers meet HomeReady’s homeownership education requirements. Later this year, Fannie will offer lenders a $500 credit to encourage borrowers to take advantage of the housing counseling option to help sustain long-term homeownership. In addition, Fannie simplified income-eligibility requirements for ...
USMI Names MGIC Chief as Chairman. U.S. Mortgage Insurance has tapped Patrick Sinks, chief executive of MGIC Investment Corp., to be the trade group’s new chairman. Sinks succeeds USMI Chairman Rohit Gupta, president and CEO of Genworth Mortgage Insurance. Sinks served previously as USMI’s vice chairman. Bradley Shuster, chairman/chief executive for NMI Holdings, will take overNew Reverse-Mortgage Product. California Mortgage Advisors has expanded its reverse-mortgage menu, with the addition of a non-FHA reverse mortgage option of up to $6 million for select clients. With the new product, CMA joins a handful of private reverse-mortgage lenders that will consider properties valued up to $6 million. Last year, American Advisors Group, the largest Home Equity Conversion Mortgage lender, announced its AAG Advantage lending program, which features the ...
RSS