The increasing return of private capital to the mortgage market that is expected to materialize post Dodd-Frank will provide plenty of opportunity for mortgage real estate investment trusts, with those investing in agency MBS likely to face a particularly low-risk environment, some leading financial services analysts suggest. gWe believe that the increased privatization of the mortgage market combined with the risk retention requirements of the equalified residential mortgagef will create...
Rating agency DBRS has clarified its position on several key provisions following a review of market comments on its exposure draft on third-party due diligence criteria for U.S. residential MBS. Not all firms can produce 36 months of payment history on seasoned home loans, particularly with respect to recently purchased home loans. Hence, verification of the pay histories of loans seasoned more than 18 months up to less than 36 months will be allowed...
Backed by a significant amount of collateral from older deals, the rebound in commercial MBS activity has taken on a different look than the pre-crash market, experts say. The CMBS 2.0 market is expected...
Even as securitization market watchers in both the U.S. and the European Union attempt to reconcile each others new and evolving risk-retention rules, experts warn that an obscure provision of the Dodd-Frank Act could complicate...
A modest gain in the issuance of securities backed by auto financing and a boost from the student loan sector helped push total non-mortgage ABS issuance up 5.4 percent in the first quarter, according to a new ranking and analysis by Inside MBS & ABS. The ABS market generated... [Includes three data charts]
Private capital could help resolve the foreclosure crisis if servicers and investors can agree to programs allowing the sale of distressed mortgages out of non-agency MBS pools, according to Jordan Dorchuck, vice president and chief legal officer at American Home Mortgage Servicing, Inc. Dorchuck outlined a proposal to allow...
The Securities and Exchange Commission this week proposed a new method for determining whether non-agency MBS will enjoy certain federal exemptions without relying on credit ratings. The SEC and other agencies in recent years have been gradually eliminating references to credit ratings in a variety of regulations affecting...
Representatives of the securitization industry are raising concerns that some key aspects of the risk-retention proposed rule that federal bank regulators are working on might bring the secondary mortgage market to a grinding halt, and are urging regulators to remove or clarify some proposals. Much of the concern has to do with...
Bank of America successfully turned back a class-action lawsuit filed by disgruntled investors in Countrywide MBS, but new cases stemming from the collapse of the non-agency mortgage market continue to be filed. According to Judge Mariana Pfaelzers dismissal order in the U.S. District Court of the Central District of California, BofA and its...
Fannie Mae and Freddie Mac in 2010 continued to take a beating from their MBS guarantees on high-risk mortgages, but the performance of these loans did improve somewhat last year, according to a new report from the Federal Housing Finance Agency. Since the beginning of 2008, the two government-sponsored enterprises have burned through...