Participants in the commercial MBS market appear to have some certainty regarding the use of third-party purchasers to meet risk-retention requirements. The Securities and Exchange Commission seems to have helped resolve concerns about the accounting treatment for such deals, though a formal statement hasn’t been issued.
After exploring the single-family rental market for the better half of a year, Freddie Mac an-nounced a $161 million pilot deal with CoreVest American Finance Lender. The government-sponsored enterprise said its foray into the market is aimed at providing affordable housing for low-income and working families.
New pooling restrictions announced last week by Ginnie Mae to curb churning and prepayment speed spikes are likely a precursor to future changes in pooling and refinancing policies at Ginnie and the Department of Veterans Affairs, according to analysts.
The average daily trading volume in agency MBS inched up to $223.6 billion in November, the second best showing of the year, according to figures compiled by the Securities Industry and Finan-cial Markets Association. The only other month that was stronger was January at $229.8 billion.
The Federal Home Loan Bank of Seattle lost an appeal in an MBS case against Barclays Capital this week in which it claimed the investment banker made false statements or left out certain facts about the securities it sold in 2008. But the Court of Appeals of Washington State ruled that theFHLBank was fully aware of what it was buying at the time.
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