For the past several weeks, speculation was rife that if the yield on the 10-year bond remained under 2.0 percent at March 31 Freddie might book a large hedging loss...
Some mortgage lobbyists predict Watt – a lawyer by training and a former Congressman – will pull the recap lever by the end of the Obama administration...
An estimated $24.52 billion of GSE loans were delivered into MBS during 1Q16 with the servicing rights being taken over by a servicer not affiliated with the loan seller.
Over at Freddie Mac, the GSE did $10.8 billion in issuance for the first quarter, mostly in its K-deal program, along with its small balance program, otherwise known as “SB deals.”
The secondary market for mortgages with TRID errors has yet to lose any steam, even though it was anticipated that the action would fade by now. That’s the assessment of Jeff Bode, CEO of Mid America Mortgage, Addison, TX, one of the largest investors in loans with TRID problems. “It’s still pretty solid,” Bode told IMFnews, an affiliated publication. “But I don’t see how much longer it can last.” Bode noted that some of the mortgages he’s reviewing have errors that are so minor he’s surprised that secondary market investors are balking at them in the first place. Mid America buys such mortgages and “makes the cures” itself, the CEO noted. A secondary market for mortgages with TRID errors – jumbos ...
New MBS issuance backed by income-property mortgages fell in the first quarter of 2016 as all sectors of the market got off to a weak start in the new year, according to a new Inside MBS & ABS analysis. A total of $44.78 billion of commercial mortgages were securitized in the first three months of the year, down 11.8 percent from the fourth quarter. It marked the lowest three-month output since the second quarter of 2014, when $37.61 billion of commercial mortgages were securitized. Both sides of the industry saw...[Includes one data table]
The government-sponsored enterprises Fannie Mae and Freddie Mac are issuing multifamily MBS in 2016 at a rate that should approach and perhaps exceed $100 billion by the end of the year, according to the latest data and projections from the pair. That compares with a Federal Housing Finance Agency GSE scorecard cap of $31 billion in volume for each, up $1 billion over last year. However, there’s a good bit of wiggle room there because Fannie and Freddie essentially have “capped” and “uncapped” buckets. The more active of the two, Fannie, churned out $12.6 billion of new multifamily MBS in the first...
A lack of formal guidance from the Consumer Financial Protection Bureau regarding TRID mortgage disclosures won’t prevent rating services from placing ratings on new non-agency MBS. The rating services are even willing to rate new deals before the Structured Finance Industry Group releases standards for the handling of TRID issues by third-party due diligence firms. However, issuers and investors appear to be less comfortable with liability from the rule the CFPB implemented in October combining the disclosure requirements of the Truth in Lending Act and the Real Estate Settlement Procedures Act. Save for a $331.95 million jumbo MBS issued by Two Harbors Investment at the end of March, no firm has issued a deal that includes loans subject to TRID. On March 18, SFIG proposed...
Mortgage trading desks the past few months have seen a noticeable increase in whole loan trading tied to seasoned Fannie Mae and Freddie Mac loans, according to traders interviewed this week by Inside MBS & ABS. Jason Eisendrath, director of loan sale strategies for Mortgage Delivery Specialists, said the sellers include not only money-center banks, but credit unions. “The credit unions, in particular, are holding a lot of [government-sponsored enterprise] paper,” he said. MDS is a part of Mortgage Industry Advisory Corp., New York. It’s...
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