“A number of companies are expanding the lines they need,” said Larry Charbonneau. “I’ve been doing a number of reviews for warehouse banks lately. Volume is definitely picking up.”
New issuance of agency single-family MBS rose for the fifth straight month in August, including an unexpected boost from refinance activity, according to an Inside MBS & ABS ranking and analysis. Fannie Mae, Freddie Mac and Ginnie Mae issued $120.10 billion of single-family MBS last month, a 6.9 percent climb from July’s total. August represented the second biggest month of 2017 but fell short of the $134.21 billion issued back in January. At that point, the MBS market was digesting a strong wave of refinance loans that quickly deteriorated over the following months. But the agencies saw...[Includes two data tables]
Redwood Trust worked for years to revive the jumbo MBS market by issuing deals with super-prime mortgages. Now, the firm is shifting its focus somewhat to “expanded prime” mortgages that have slightly looser underwriting standards. The $316.49 million Sequoia Mortgage Trust 2017-CH-1 is the first MBS from Redwood to deviate from super-prime standards. The deal received preliminary AAA ratings this week from Kroll Bond Rating Agency and Moody’s Investors Service. The average combined loan-to-value ratio of the mortgages in the MBS is...
Although Fannie Mae, Freddie Mac and Ginnie Mae have all granted consumer forbearance on homes damaged by this season’s hurricanes, servicers must continue to make payments to MBS investors in most circumstances, a situation that could affect thinly capitalized nonbanks. In particular, smaller privately held nondepositories that became Ginnie issuers this decade could face some financial headwinds, depending on how heavily concentrated their business has been in the Texas Gulf region and south Florida. As Inside MBS & ABS went to press late this week, it was...
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