Despite the 90 percent estimate offered by Applegate, the government-sponsored enterprises’ use of the CSP – let alone the GSE single security – looks to be a ways off.
David Applegate, CEO of Common Securitization Solutions, revealed this week that the joint venture owned by Fannie Mae and Freddie Mac has finished much of the work for a major milestone in the common securitization platform. Although officials promised more information about the timeline next year, the government-sponsored enterprises’ use of the CSP – let alone the GSE single security – looks to be a ways off. At the ABS East conference produced by Information Management Network this week in Miami, Applegate said CSS has completed about 90 percent of the work required for single-class security issuance by Freddie on the CSP. Officials at CSS, the GSEs and the Federal Housing Finance Agency revealed this week that Freddie would be the first to test the system, and that Fannie would go on board at a later date, when issuance of the interchangeable single security will begin. The officials also noted...
“It’s amazing that we’re talking about this seven years after the financial crisis,” said Bob Behal, a principal and co-head of ABS/commercial MBS Investments at Vanguard Group, during this week’s ABS East conference in Miami. He was referring to the practice of rating shopping, which is a current practice, particularly in the commercial MBS market, according to a number of industry participants. A panel regarding reforms for the rating services and due diligence providers attracted a standing-room audience at the conference produced by Information Management Network. The conference was...
Mortgage securitization rates in 2015 are still low compared to last year, but some of the decline is likely due to the lag between primary market origination and MBS issuance. For the first six months of the year, new MBS issuance represented 73.8 percent of total originations, according to a new Inside MBS & ABS analysis. That’s down from a 75.4 percent securitization rate for all of 2014. Securitization rates are...[Includes one data table]
Last week, Angel Oak Mortgage Solutions was slated to issue a roughly $150 million security backed by nonprime mortgages, an event that promised great things for both the company and the non-agency market. But then nothing happened, or so it appears. Two weeks after confirming to Inside MBS & ABS and another news organization that a new nonprime security was definitely ready to price, the company – and its underwriter, Nomura Securities – has suddenly stopped talking about the deal, both publicly and privately. One source who has held meetings with executives at both firms said...
Documents pertaining to the conservatorship of Fannie Mae and Freddie Mac, and the controversial change that strips the government-sponsored enterprises of net worth, will remain sealed, under a September court order in a lawsuit filed by private GSE shareholders. Judge Margaret Sweeney’s ruling in Fairholme Funds v. The United States went in favor of the Federal Housing Finance Agency to keep the documents under “protected information,” denying a motion by Fairholme to release the documents. Charles Cooper, attorney with Cooper & Kirk, the law firm representing the investors, told...
The Federal Reserve’s Open Market Committee this week fulfilled the expectations of roughly half the Wall Street participants and economists surveyed by financial news organizations and opted to hold the line on interest rates, and to maintain the status quo when it comes to the Fed’s massive balance sheet holdings of agency residential MBS and debt. “We recognize that there has been a great deal of focus on today’s policy decision,” Fed Chair Janet Yellen said in her press conference after the FOMC’s two-day meeting concluded Thursday afternoon. “The recovery from the Great Recession has advanced sufficiently far, and domestic spending appears sufficiently robust, that an argument can be made for a rise in interest rates at this time. We discussed this possibility at our meeting. “However, in light of the heightened uncertainties abroad, and a slightly softer expected path for inflation, the committee judged...
Ginnie Mae is lowering the guaranty fee for a GNMA Platinum security to get more investors to use the program. “We want to encourage utilization of the program by lowering the g-fee to an amount sufficient for investors to create a platinum security, which will increase the administrative, pricing and distribution efficiency of the program,” said John Getchis, Ginnie senior vice president of capital markets. Platinum securities allow...
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