Two of the most active originators of nonprime loans that don’t meet the qualified-mortgage test are working on new MBS deals, though market timing is a little uncertain at this point. Mike Fierman, managing partner of the Angel Oak Companies, said the Atlanta-based company has a transaction on the drawing board, but noted that the two recent hurricanes have slowed progress. “As a result … we are taking steps to re-verify the condition of all properties and are offering borrowers assistance if necessary,” said the managing partner. Fierman noted...
Social Finance, a former fintech darling, has been through the ringer of late: cofounder, CEO and “brain” Michael Cagney resigned midmonth amid sexual harassment allegations and other top executives have departed as well, raising questions about the company’s direction – and future. SoFi, as it’s known, was a “disruptor” of sorts in the financial services arena, refinancing student loans made to millennials at cheaper rates and then securitizing the paper. Over the past 18 months, the privately held startup has been...
S&P Global ranked as the top rating service in the non-mortgage ABS market during the first half of 2017, with strong market shares in the major asset categories, according to a new ranking and analysis by Inside MBS & ABS. S&P rated $69.54 billion of ABS issued in the first half of the year, roughly 60.1 percent of total issuance by dollar volume. For all of 2016, the company finished second in ABS ratings with a 53.6 percent share of the market. S&P had...[Includes two data tables]
Mortgage bankers will now have until June 25, 2018, to adopt new margin requirements under Financial Industry Regulatory Authority Rule 4210, instead of the previous date of Dec. 15, 2017, after the self-regulatory organization opted to give the industry six more months of lead time. Last week, FINRA announced it was filing the proposed extension with the Securities and Exchange Commission, which has to sign off on it. But given the non-controversial, industry-supported nature of the proposal, the SEC’s blessing is considered a formality. According to a summary by the Mortgage Bankers Association, the amendments institute...
The biggest challenge for the vibrant single-family rental market may be the shortage of available homes to purchase, according to panelists speaking at an Urban Institute event highlighting institutional investment in SFRs this week. And one analyst pointed to mid-sized investors as being best positioned to profit from the market. Since the financial crisis, SFRs have emerged as a viable housing option and real estate investment firms are seizing the opportunity. Both mom-and-pop operators and institutional investors have been buying homes of all sizes and offering them as rental properties. Prior to the crisis, there were...
Fannie Mae and Freddie Mac are encouraging MBS market participants to begin planning how they will adapt to the new uniform MBS when it goes online in early 2019. The “Single Security Initiative Market Adoption Playbook” provides a detailed look at the many changes involved in the new security, which will take the place of the separate to-be-announced MBS that the two government-sponsored enterprises now issue. The project includes...
Demand in the secondary market for credit risk could help increase issuance of prime non-agency mortgage-backed securities, according to industry analysts. A significant number of investors at the ABS East conference last week said deals across the MBS and ABS markets have been oversubscribed, with the supply of new issuance in recent months seen as insufficient. The conference was produced by Information Management Network in Miami Beach. Peter Sack, a managing director at Credit Suisse, said...
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