More issuers are stepping up to the plate by creating securities collateralized by nonperforming residential loans, but so far the action has mostly taken place in the private-placement market. “There have been a bunch of securitizations of NPLs lately,” one trader told Inside MBS & ABS, “but it’s all been Reg. 144 filings,” a reference to the Securities and Exchange Commission rule that allows for the public resale of restricted collateral if a number of conditions are met ...
It doesn’t happen often in the agency MBS market, but Ginnie Mae last month took the yellow jersey away from Fannie Mae. Ginnie issued a record $45.54 billion of single-family MBS in July, the agency’s biggest monthly output ever. That was a 12.6 percent increase from June, and nudged past Ginnie’s previous biggest month, July 2009, when its issuers pumped out $44.84 billion of single-family MBS. And it beat Fannie’s $44.14 billion of ... [Includes two data charts]
Wall Street giant Goldman Sachs this week announced it has set aside $1.45 billion for legal expenses for the second quarter of 2015, bringing its total anticipated legal costs so far to $5.9 billion to settle Department of Justice claims stemming from the sale of vintage non-agency MBS. A good chunk of that figure – $270 million – is expected to be tapped to resolve residential MBS litigation brought by pension funds led by NECA-IBEW Health & Welfare Fund of Illinois ...
Freddie Mac’s first Whole Loan Securities deal was met with strong demand from investors, according to industry analysts. The transaction differed in a number of ways from the risk-sharing deals the government-sponsored enterprises have issued, as its structure was more like a non-agency MBS. The $300.27 million WLS 2015-SC01 included senior tranches with a total balance of $278 million and credit enhancement of 7.50 percent. Investors could purchase the senior ...
Close to one-third of the $154.79 billion in non-agency MBS serviced by Ocwen Financial is subject to potential servicing transfers due to downgrades to the firm’s servicer ratings and actions by investors. However, Ocwen has managed to retain servicing on a vast majority of the 119 deals thus far, helped by the proceeds the company delivers to non-agency MBS investors. Ocwen faces the potential loss of non-agency MBS servicing on two fronts. Some $43.1 billion ...
The first week of August was volatile for MBS prices as investors tried to make sense of the new job numbers and whether the “flight to quality” of U.S. Treasuries and MBS would continue unabated. “The market was very reactionary even to minor news this week,” said Joe Farr, director of sales and marketing for MBS Quoteline. As Inside MBS & ABS went to press, the bid price on the benchmark Fannie Mae 3.50 percent bond was in the neighborhood of 103.43 ...
Fannie Mae and Freddie Mac reduced their retained mortgage portfolios by a combined $44.4 billion during the second quarter, a period during which the government-sponsored enterprises posted substantial increases in net earnings. Freddie Mac’s non-agency MBS holdings declined 11.6 percent, while its un-securitized whole-loan portfolio dropped 3.0 percent. The GSE sold $3.3 billion of non-agency MBS and securitized $2.1 billion of single-family ... [Includes one data chart]
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