Ginnie Mae has issued its first-ever security indexed to the Secured Overnight Financing Rate, the leading candidate to replace the decades-old London Interbank Offered Rate. The agency expects more SOFR-indexed issuance in the future.
Natural disasters are increasing in frequency, posing risks to investors in non-agency MBS, according to Moody's. Deals have some protections built-in for investors and rating services also take steps to shield investors from taking losses.
Late Thursday, the Senate voted to approve Mark Calabria as the permanent director of the Federal Housing Finance Agency by a vote of 53 to 44 along party lines. A few senators did not cast ballots. But don’t look for this free-market economist to quickly make radical changes to how Fannie Mae and Freddie Mac operate. The first thing to watch is whether Calabria allows them to build more capital…Non-QM lender Citadel Servicing Corp., Irvine, CA, originated $475 million in ...
The sale of non-qualified mortgage lender and securitizer Deephaven Mortgage, Charlotte, NC, appears to be on the back burner for now, according to sources tracking the deal. “There was an auction, a bid, but it didn’t meet their price,” said one executive who claimed to have knowledge of the transaction. This source, requesting anonymity, maintains that at one point there were at least 20 different investors expressing an interest in Deephaven but it’s unclear how many had a copy of ...
It may seem counterintuitive, but MBS backed by reperforming loans, and thus not eligible to be traded in the to-be-announced market, are the ideal assets in collateralized mortgage obligation deals. According to a report from Stifel’s fixed income strategy division, the reason is simple — most modified loans are unlikely to be refinanced as they have “a unique and desirable prepayment profile.” Borrowers with modified loans have already had their rates dramatically reduced. They're unlikely to ...
The transition away from the London Inter-bank Offered Rate could prompt significant tax issues for MBS and ABS investors. The Structured Finance Industry Group wrote to the Internal Revenue Service and Treasury last week requesting guidance on the issue. LIBOR won’t be available after 2021 and market participants are looking for an alternative reference rate. Various securities are tied to the London benchmark rate in terms of the loans that back the deals and their ...
Store closures by J.C. Penney, as part of its plan to turn around operations and return to the black, are putting pressure on mall-focused real estate investment trusts to reduce their risk exposure, Moody’s Investors Service said in a new report. J.C. Penney in February announced plans to close 27 stores this year, including 18 full-line department stores and nine home and furniture stores, spanning at least 13 states. Moody’s expects the retailer to announce more closures in ...
As a result of numerous inquiries, Ginnie Mae has provided additional clarity on the seasoning for VA refinances to help issuers comply with its 2018 guidance on pooling eligibility requirements. Under the Dodd-Frank reform act, to qualify for a Ginnie guarantee, a VA refi loan must have a recoupment period of 36 months and provide a net tangible benefit to the borrower. The seasoning requirement is aimed at curbing serial churning — the repeated refinancing of a loan to generate ...
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