Activity in the non-agency MBS market involving nonperforming loans and re-performing loans is expected to continue to flourish through at least the end of this year, according to industry analysts. Vintage mortgages in scratch-and-dent deals accounted for 42.0 percent of the non-agency MBS issued in the first half of 2015, according to the Inside Mortgage Finance MBS Database. The $15.60 billion in scratch-and-dent volume included a mix of nonperforming loans and re-performing loans. Issuance of non-agency MBS backed by NPLs and RPLs through two quarters this year equaled...

Trading in non-agency MBS, by comparison, is almost non-existent with June's volume coming in at just $2.9 billion.

Meanwhile, the U.S. House of Representatives approved a modified bill that would require federal banking regulators to study the role of depository institutions in the MSR market.

The delinquent notes are being marketed in collaboration with Wall Street firms Credit Suisse, Wells Fargo Securities, and Williams Capital Group.

CSS recently unveiled the trade groups that would participating in the IAG, but did not identify any individuals…

Depository institutions – along with the top tier of companies that service loans pooled in mortgage-backed securities by Fannie Mae, Freddie Mac and Ginnie Mae – continued to pull back from the market during the second quarter of 2015, according to a new Inside Mortgage Finance analysis. Commercial banks, thrifts and credit unions serviced a total of $3.218 trillion of mortgage servicing rights connected with agency MBS as of the end of the second quarter. That was down 6.9 percent from the first quarter of 2015. Although depositories remain the dominant force in the agency MSR market, accounting for 64.2 percent of servicing on outstanding single-family MBS, nonbanks continued...[Includes four data tables]

The big gains in business volume at the FHA and the Veterans Administration reflect the two agencies’ differing missions, and officials at both organizations are looking at ways to improve risk management practices. Ed Golding, principal deputy assistant secretary at the Department of Housing and Urban Development, said the FHA dominates the market for high loan-to-value lending to borrowers with credit scores below 680. While some view 680 as borderline subprime, it’s the median credit score for the country, he noted during remarks at a symposium sponsored this week by the Urban Institute. “Risk management is...

IMA Managing Member Tom Piercy said the advisory firm also plans to offer an $800 million package of Fannie Mae/Freddie Mac servicing rights.

With the second quarter having just ended, several large flow and bulk MSR transactions are in the works...

Perry Capital and other speculators own the junior preferred and common shares of Fannie Mae and Freddie Mac...