In fiscal 2014, Ginnie Mae approved roughly 43 companies as MBS issuer-servicers, a 44 percent reduction from the year prior, according to an analysis of agency data by Inside MBS & ABS. So far, in fiscal 2015, which began October 1 of last year, roughly 25 firms have been granted issuance approval. Moreover, the companies being given the greenlight to participate in the program are overwhelmingly nonbanks. The fall-off in both applications and ...
Despite the Federal Housing Finance Authority’s proposed rule that would block real estate investment trusts from joining a Federal Home Loan Bank through captive insurance units, the Indianapolis FHLBank approved a new REIT member. An insurance subsidiary of Five Oaks Investment Corp. was admitted on Feb. 24, according to the REIT’s 2014 annual report released this week. A handful of other REITs, including Two Harbors, Redwood Trust and Invesco ...
Signing up participants has been somewhat slower than Ginnie Mae expected since the launch of its Issuer Operation Performance Profile tool, or Issuer Performance Scorecard, in February. In a recent outreach call to issuers, Ginnie officials said they have signed up 70 issuers but still need another two-thirds of issuers to participate in the performance scoring process. They cited no reason for the slow progress of issuer registration. The IOPP tool will ...
WinWater Home Mortgage and Two Harbors Investment are preparing to issue separate jumbo mortgage-backed securities, according to presale reports. WinWater’s deal is set to include some non-qualified mortgages while Two Harbors’ jumbo MBS sticks with the type of mortgages that have dominated jumbo MBS issued in recent years. The $287.74 million WinWater Mortgage Loan Trust 2015-3 is set to receive AAA ratings with credit enhancement of ...
A moratorium of real estate investment trusts gaining membership in the Federal Home Loan Bank system ended recently when the captive insurer of Five Oaks Investment was approved as a member of the FHLBank of Indianapolis. The REIT revealed this week that Five Oaks Insurance gained FHLBank membership on Feb. 24. “FOI is currently negotiating agreements for advances with the FHLBank and, although no assurance can be given, FOI anticipates ...
The two main types of representation-and-warranty frameworks used in jumbo mortgage-backed securities can both effectively protect investors, according to Moody’s Investors Service. Each framework presents different risks, and industry participants suggest that other aspects of deals carry more importance for investors. Jumbo MBS issued in recent years have largely included either an open-ended rep-and-warrant framework or a prescriptive framework ...
The outstanding balance of non-agency mortgage-backed securities increased in February on a monthly basis, according to a Standard & Poor’s analysis of remittance data. The increase was a rare occurrence as non-agency MBS outstanding has regularly declined since 2009. Of the more than 20,000 jumbo mortgages Redwood Trust has acquired as part of its jumbo conduit activities since 2010, only 11 have gone 60-plus days delinquent ... [Includes five briefs]
Security issuances backed by FHA and VA loans totaled $267.6 billion in 2014, with several large states accounting for a significant share of FHA/VA originations. An estimated $158.1 billion of FHA-insured loans, including modified loans, were securitized last year, with purchase home loans comprising most of the transactions. Approximately $30.0 billion of FHA refinance loans were securitized as well. The FHA MBS had an average loan-to-value ratio of 92.3 percent and a debt-to-income ratio of 40.1 percent. The average FICO score was 672.3, which was indicative of first-time homebuyers and borrowers with slightly tainted credit. First-ranked California, Texas (#2) and Florida (#3) combined for a total of $48.0 billion, which represented 30.3 percent of FHA loans in Ginnie Mae mortgage-backed securities in 2014. Fourth-ranked New York reported a total of $6.7 billion while ... [ 2 charts]
Issuer registration for Ginnie Mae’s Issuer Performance Scorecard has been somewhat slower than expected, according to agency officials. The reason is unclear but only about 70 issuers so far have registered for Ginnie’s Issuer Operational Performance Profile (IOPP) tool since its launch on Feb. 17, 2015. Officials said they need to sign two-thirds more to get the IOPP system up to full speed. In a recent outreach call, officials urged those issuers who have not yet registered to contact their security officers for authority to access the Ginnie Mae Enterprise Portal (GMEP), the gateway to the IOPP system. Issuers must first be enrolled in GMEP before their security officer can grant them authority to access the IOPP system. The IOPP, also known as the Issuer Performance Scorecard, will rate each issuer’s operational performance and default management and compare them to ...
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