“The policy mix is very much weighted on the side of not lending, or at least not underwriting anything but a prime loan,” according to Chris Whalen, an executive vice president and managing director at Carrington Investment Services. Whalen and others spoke last week at a panel hosted by the American Enterprise Institute. The industry analysts said actions by federal regulators are limiting issuance of non-agency mortgage-backed securities. Tom Zimmerman, a managing director at UBS, said ...
Bank of America agreed this week to pay $500 million to settle lawsuits from investors in non-agency mortgage-backed securities issued by Countrywide Financial in 2005 through 2007. If it receives judicial approval, the settlement on about $15.0 billion in non-agency MBS will be the largest-ever non-agency MBS class-action recovery. “After five years of hard-fought litigation, this record-breaking recovery is a tremendous result for MBS investors misled by Countrywide and ...
Non-agency jumbo mortgage-backed securities issued by Redwood Trust in 2010 and 2011 have been subject to scrutiny by the Securities and Exchange Commission in recent months. The SEC looked into Regulation AB compliance issues on the deals, largely seeking increased disclosures. The SEC’s inquiries generally related to deal participants other than Redwood. And in some cases, the SEC sought disclosures related to actions beyond the firms’ participation in non-agency MBS issuance ...
The Senate Banking, Housing and Urban Affairs Committee hasn’t marked up a bill in more than a year, but Democrats and Republicans on the panel pushed this week to begin the process of reforming the government-sponsored enterprises. “I think the time is right to address this issue and move it forward,” Sen. Jon Tester, D-MT, said this week at a hearing by the committee. “I think there are folks on both sides of the aisle that want to quit playing with this like a political football and ...
“Private capital out there, here we come,” Edward DeMarco, acting director of the Federal Housing Finance Agency, said this week. He was talking about pending risk-sharing pilot transactions between the government-sponsored enterprises and the non-agency market. The FHFA set a goal for Fannie Mae and Freddie Mac to each issue at least $30.0 billion in risk-sharing transactions this year. Those efforts were delayed in 2012 due to regulatory concerns, but DeMarco said the GSEs will soon issue such deals ...
Issuance of non-agency MBS quadrupled in the first quarter, according to new figures compiled by Inside MBS & ABS. Firms selling securities include Ocwen and Nationstar.
Ginnie Mae is seeking comment from Wall Street dealers on whether the agency should continue maintaining two separate MBS programs, or consolidate them and create a third Ginnie Mae security. The agency has reportedly sent questionnaires to dealers seeking their opinion on a number of options, including combining the lower volume Ginnie Mae I MBS program with the far busier Ginnie Mae II program and its likely impact on liquidity, issuance and market share. A Bloomberg report said...
The non-agency MBS market produced $8.33 billion in new transactions during the first quarter of 2013, its strongest issuance in nearly two years, and did so the old-fashioned way by relying heavily on “new” prime jumbo mortgages. The first three months of 2013 saw nearly a threefold increase in non-agency MBS issuance compared to the previous quarter and was 65.1 percent ahead of the pace set in 2012, according to a new analysis and ranking by Inside MBS & ABS. Although over half the issuance volume was in re-securitizations and deals backed by servicer advances, the most encouraging sign was the continued rebound in prime jumbo MBS production. Redwood Trust made good...[Includes three data charts]
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