Outside investors poking around the mortgage banking industry for a possible franchise deal first and foremost want the companies they’re courting to have Ginnie Mae approvals. “If you have the Ginnie eagle, it’s golden,” said Chuck Klein, managing director for mergers and acquisitions for Mortgage Banking Solutions. “Retained Ginnie servicing is what it’s all about.” Klein, of course, isn’t...

Despite a surge in agency MBS issuance in 2012, new production of agency-backed real estate mortgage investment conduits fell 19.4 percent from 2011 levels, according to a new analysis and ranking by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $292.5 billion in REMICs last year, with Fannie accounting for 44.1 percent of the market. Fannie was the only agency of the three to increase its REMIC production compared to 2011 levels, managing a 6.0 percent increase. Agency REMIC volume fell...[Includes one data chart]

Covered bond investors are taking a more flexible view of ratings and other characteristics associated with these investments, according to a survey conducted last month by Fitch Ratings. “Continuing a trend discovered during last year’s survey, the results … reveal that investors are increasingly willing to innovate, not only in terms of bond characteristics, but also in terms of rating,” analysts at Fitch said. For example, “a remarkable 91 percent of investors declared...

Lawyers involved in securitization issues said they are feeling both anxiety and relief regarding regulatory issues in 2013. The feelings have been prompted by the Dodd-Frank Act with the greatest looming issue being risk-retention requirements. “To say that there is a lot of anxiety with this rule cannot be overstated and I really think it’s an impediment to some asset classes really getting traction in 2013, particularly mortgages,” Jon Van Gorp, a partner at the law firm of Mayer Brown, said on an outlook conference call late last week. “No one knows...

The volume and market share of non-agency jumbo mortgage-backed security issuance increased significantly in 2012 compared with other post-crisis years. However, volume remains well below activity seen even before the 2005 boom in non-agency MBS issuance. Some $3.46 billion in non-agency jumbo MBS were issued last year, according to the Inside Mortgage Finance MBS Database, more than four times the volume issued in 2011. Redwood Trust issued six deals last year totaling ... [Includes one data chart]

After including a significant amount of ARMs in its first deal of 2013, Redwood Trust relied largely on 30-year fixed-rate mortgages for its second non-agency jumbo mortgage-backed security of the year, according to presale reports released this week. The $666.13 million Sequoia Mortgage Trust 2013-2 is set to receive a triple-A rating with characteristics largely similar to other recent issuance from the real estate investment trust. While ARMs accounted for 21.0 percent of the dollar volume of SEMT 2013-1 ...

The Federal Housing Finance Agency and General Electric this week settled a lawsuit filed by the FHFA in 2011 regarding $549.0 million in non-agency mortgage-backed securities purchased by Freddie Mac. The settlement is the first on the FHFA’s 18 pending non-agency MBS lawsuits. The terms of the settlement were not disclosed. Residential Capital agreed to pay $297.6 million to Fannie Mae this week, prompting the government-sponsored enterprise to drop its objection to ResCap ... [Includes four briefs]

Rule for Selling Government Mortgages to Fannie Mae Updated. Eligibility for delivery of mortgage loans backed by FHA, VA and the Department of Agriculture is now available on a negotiated basis only, Fannie Mae announced in a recent update to its Selling Guide (Announcement SEL-2013-01). The change is effective for all government loans, including whole loans sold to Fannie on or after May 1, 2013, and government loans in mortgage-backed securities with issue dates on or after May 1. Genworth to Delink Struggling Mortgage Insurance Operations from Holding Company. Genworth Financial plans to ...

Stringent appraisals have hindered home sales, limiting purchase-mortgage originations and constraining home prices, according to real estate agents responding to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Appraisers counter that they are accurately pricing homes and cite burdensome regulations along with new requirements from lenders trying to avoid buybacks. In certain circumstances, appraised home prices have been set well below listing price, frustrating sellers that have received multiple offers. “Appraisals continue to cause problems as the market is trying to recover value, but tight appraiser guidelines are not keeping up with the agreed sales prices between buyers and sellers,” according to a real estate agent in Michigan. The sales-to-list price ratio has trended...

The non-agency jumbo MBS market in 2012 posted its best year since the cratering of the U.S. housing market and financial market collapse back in 2008, and increased regulatory clarity may spur the recovery further in 2013. A total of $3.46 billion of non-agency jumbo MBS were issued last year, according to a new ranking and analysis by Inside MBS & ABS. In the pre-crash years, that level of issuance didn’t add up to a decent week in productivity. But last year’s prime non-agency MBS issuance was...[Includes three data charts]