A steady decline in single-family agency MBS issuance led to a 13.8 percent decline in MBS and ABS production during the third quarter of 2013, according to a new Inside MBS & ABS analysis. A total of $388.53 billion of single-family MBS were issued during the third quarter, a 15.7 percent drop from the previous three-month period. It marked the lowest quarterly output for single-family MBS since the second quarter of last year, although year-to-date production was still up 9.0 percent from the first nine months of 2012. Every component in the residential MBS market was...[Includes three data pages]
The secondary market for residential servicing rights returned to health this year, spurring new hopes that it could lead to securitizations of “excess” MSRs. But getting there could prove difficult. Mark Garland, president of MountainView Servicing Group, said mortgage firms that have amassed large holdings of MSRs would like to unlock the value imbedded in this esoteric asset. One way to do that is through securitization transactions. According to Garland, large banks – including Wells Fargo – have been quietly selling...
Fannie Mae remains on track to securitize $30 billion in multifamily loans this year, compared with nearly $34 billion in 2012, which would meet the FHFA scorecard target.
Fannie Mae plans to issue a $675 million risk-sharing securitization in a transaction that likely will hit the market by mid-October, according to potential investors who were briefed on the government-sponsored enterprise’s plans. Market participants said Fannie has contemplated issuing two such transactions by year-end, but the company isn’t talking about specifics, at least not yet. Still, the GSE is laying...
Potential investors have expressed strong interest in the pending risk-sharing deal from Fannie Mae and looking for tweaks in the structure recently used by Freddie Mac. Martin Hughes, CEO and director of Redwood Trust, noted that the real estate investment trust invested in Freddie’s Structured Agency Credit Risk transaction. He suggested two changes as the government-sponsored enterprises work to share risk with the non-agency market. Freddie’s STACR deal was structured...
Higher-priced mortgages accounted for a scant 1.0 percent of loan sales in 2012, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Originations of higher-priced mortgages increased slightly compared with 2011 but the growth didn’t keep up with the increase in overall originations. Higher-priced first liens have an annual percentage rate at least 1.5 percentage points above the average prime offer rate. Federal regulators use the metric as a proxy for subprime mortgages. Some $15.80 billion in higher-priced mortgages were sold...[Includes one data chart]
The Mortgage Bankers Association and other industry trade groups fear that the shutdown will have a growing impact on the housing market, including FHA endorsements.
However, if Fannie Mae determines through established delivery or quality-control review processes that any loan has ineligible term or amortization provisions, it will be subject to repurchase.
Large banks and some smaller shops continue to test the servicing sales market this fall, with bulk offerings from Citigroup and Flagstar garnering attention from investors. Industry advisors who track the market say Flagstar recently wrapped up bidding on a $12 billion package of mortgage servicing rights on newly originated loans. “These were pristine quality receivables, stuff that was funded over the past few months,” said one observer who saw the bid package. This summer, Flagstar – in an effort to capture the value of MSRs held on its balance sheet – sold...
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