Wells Fargo once again ranked first among all agency sellers with $17.6 billion sold to Fannie, Freddie and Ginnie. Quicken was second with $8.46 billion.
After soaring to nearly a four-year high in September, monthly production of Fannie Mae, Freddie Mac and Ginnie Mae MBS starting coming to earth in October. The three agencies issued a total of $146.68 billion of single-family MBS last month, down 8.8 percent from September. Even with the downturn, October still ranked as the second-highest monthly issuance since June 2013. Year-to-date production edged...[Includes two data tables]
An affiliate of Shelter Growth Capital Partners issued its first nonprime MBS late last week, according to offering documents obtained by Inside MBS & ABS. The $113.71 million deal included non-qualified mortgages from a number of lenders. The mortgages in SG Residential Mortgage Trust 2016-1 were acquired by SG Capital Partners, an affiliate of Shelter Growth, an investment manager and hedge fund. SG Capital Partners started acquiring non-agency mortgages in January 2015. As of June 1, Shelter Growth had...
Fannie Mae this week, in partnership with “fintech” lender SoFi, rolled out a new cash-out refinance mortgage aimed at borrowers who want to tap home equity to pay down their college loans. According to interviews with Fannie officials, the rollout is driven by cutting guaranty fees that usually accompany Fannie Mae cash-out mortgages. Fannie’s average g-fee on new business was...
The government-sponsored enterprises are well on their way to trimming their retained mortgage portfolios to less than $250.0 billion each by the start of 2018. As of the end of the third quarter, Fannie Mae and Freddie Mac had a combined mortgage portfolio of $615.65 billion, down 3.3 percent from June. While Freddie historically had the larger retained holdings, the two portfolios are now roughly equal. Under the current terms of their conservatorship, Fannie and Freddie are required...[Includes one data table]
The Federal Reserve’s Open Market Committee appears to be repeating last year’s story line of promising multiple increases in interest rates at the start of the year, only to delay and delay until the final month, when it finally raised rates a bare minimum of 25 basis points. This month, the Fed passed on another opportunity to raise rates and suggested to many in the market that it finally will ratchet the federal funds target rate up a notch at its final meeting of the year in mid-December. The FOMC said the labor market has continued to strengthen and economic activity has picked up from the modest pace seen in the first half of this year. “Although the unemployment rate is little changed in recent months, job gains have been solid,” the committee said. Meanwhile, household spending has risen...
Investors said that market is in the “sweet spot” when it comes to mortgage credit, while speaking at a symposium in Washington sponsored by the Urban Institute and CoreLogic this week. John Vibert, managing director and co-head of structured products for Prudential, said his company is much more interested in financing nonperforming loans than in owning such assets. “We think...
New regulations from the Treasury Department and IRS regarding “earnings stripping” tax-avoidance schemes by multi-national companies will apply to ABS in certain circumstances, causing problems for issuers and investors, according to industry analysts. The regulations aim to reduce the benefits of corporate tax inversions and earnings stripping by distinguishing debt from equity. “Earnings stripping can reduce a company’s tax bill by generating large interest deductions when that company simply increases its debt to an affiliated foreign firm, without financing new investment in the U.S.,” Treasury Secretary Jacob Lew said when announcing the new regulations in October. The regulations generally apply...
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