Mortgage and asset securitization started 2015 with improving issuance volume and a chance to reverse last year’s paltry output. A total of $335.1 billion of residential MBS and non-mortgage ABS were issued during the first three months of 2015, according to a new Inside MBS & ABS analysis. That was up 7.7 percent from the fourth quarter of 2014, and it was a big 34.3 percent jump from the first quarter of last year. The first quarter of 2014 was...[Includes two data charts]
A little known lender called Angel Oak Mortgage Solutions hopes to fund $540 million of product this year and generate the industry’s first nonprime non-agency MBS of the “new era” with financing provided by Nomura. According to industry officials who have viewed investor materials issued by the company – a copy of which was provided to Inside MBS & ABS – Nomura has even agreed to provide “gestation repo” warehouse credit to the privately held originator. One source who claims to have knowledge of the arrangement said...
At least three years have passed since Bank of America stopped selling new purchase-money loans into Fannie Mae securities, a drought that has benefitted at least one party: Freddie Mac. According to new figures compiled by Inside MBS & ABS, in the first quarter of 2015 BofA sold $9.57 billion of mortgages into Freddie securities, beating out Wells Fargo ($8.194 billion), which traditionally has ranked first in sales to both government-sponsored enterprises. Then again, there is...
Some MBS investors and industry analysts were taken aback when the latest prepayment rates on the government-sponsored enterprises’ risk-transfer deals were reported last week. The spike in prepayments was due to low interest rates in January, with the risk-sharing deals more susceptible to prepayments than agency MBS overall due to the collateral included in them. Prepayment rates were particularly high on Freddie Mac Structured Agency Credit Risk transactions. Analysts at Barclays Capital said M1 tranches on STACR 2014-DN3 and STACR 2014-HQ1 experienced large pay-downs in March due to “seemingly high” prepayments. STACR 2014-DN3 M1 paid down by 18.0 percent in March and STACR 2014-HQ1 M1 paid down by 8.4 percent. “While the jump in prepayment speeds could be expected after the rates rally earlier this year, the magnitude of the jump may seem...
Fannie Mae Updates Reverse Mortgage Loan Servicing Manual. Fannie Mae has updated its reverse mortgage servicing manual with changes and clarifications to policies pertaining to Home Equity Conversion Mortgages. For HECMs, Fannie now requires servicers to place a real estate-owned hazard insurance policy upon completion of a foreclosure sale. It also outlined servicers’ responsibilities regarding the documentation and cancellation of REO hazard insurance claims; reimbursement of REO hazard insurance premiums; and remittance of insurance loss proceeds. The revised policy changes must be implemented no later than April 1, 2015. House Democrats Reintroduce Housing Finance Reform Bill. Democrats on the House Financial Services Committee have introduced legislation that would provide private and government risk-share coverage to all mortgages, create a ...
According to an informational circular on Angel Oak Mortgage Solutions, some of the top executives at the firm used to work for Southstar Funding in Sandy Spring, GA.
Business is booming at Fannie Mae and Freddie Mac thanks to a healthy surge in refinance activity, according to a new Inside Mortgage Finance analysis of mortgage-backed securities issued by the two government-sponsored enterprises during the first quarter of 2015. Fannie and Freddie issued a total of $189.92 billion of single-family MBS during the first three months of the year. That was up 5.9 percent from the fourth quarter of 2014, and it marked the biggest output for the GSEs since the third quarter of 2013. Early 2015 was leaps and bounds ahead of the pace set during the same period last year, which marked a 14-year low in mortgage production. All of the oomph came...[Includes three data charts]
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