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 ...
While Wall Street professionals spent the run-up to this week’s meeting of the Federal Open Market Committee wondering whether the Fed would lose its “patience” regarding a future increase in interest rates, the FOMC continued its present course on MBS investment. “The committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency MBS in agency MBS and of rolling over maturing ...
MBS investors – so far – are losing little sleep over the effect plunging oil prices might have on the market, even though delinquency rates in Texas are beginning to creep up. In some quarters of the industry, the fear is that a major (and further) correction in the energy sector will lead to massive layoffs in states dependent on oil, and that mortgagors, in time, will go delinquent on their loans. In turn, MBS and servicing rights that have a heavy concentration in ...
Returns on agency MBS are “uninspiring,” according to Thomas Siering, president and CEO of Two Harbors Investment, which has worked to diversify its assets, including putting an emphasis on jumbo conduit activities and commercial MBS. “We have a diversified business model and our operating platform obviates the need to jack up leverage to generate some return in the agency space because we think we can get attractive returns in ...
A number of non-agency MBS investors with mezzanine and subordinate positions in deals serviced by Ocwen Financial support the troubled servicer, according to industry participants. The investors have pushed back against an effort by other investors holding senior tranches to get servicing transferred from Ocwen. “Ocwen is a critically important servicer in private-label residential MBS,” John Devaney, CEO of United Capital Markets, wrote in a recent letter ...
A bipartisan group of U.S. Senate lawmakers this week urged the Federal Housing Finance Agency to move the budding common securitization platform for Fannie Mae and Freddie Mac “past the duopolistic tendencies of the past.” The FHFA originally directed the two government-sponsored enterprises to develop the CSP so that it would be open to and functional for all residential mortgage securitizers, but the agency last year detoured slightly ... [Includes one data chart]
Steady growth in the outstanding supply of agency single-family MBS offset the ongoing decline in non-agency MBS in the fourth quarter of 2014, according to a new Inside MBS & ABS analysis. Outstanding single-family MBS edged up 0.1 percent from the third quarter to finish the year at $6.357 trillion. Although that was the third straight quarterly gain, the yearend total still came up 0.6 percent short of the total outstanding at the end of 2013 ... [Includes one data chart]
The supply of home mortgage debt outstanding grew for the second consecutive quarter during the final three months of 2014, eking out a slim 0.1 percent gain from the end of September. The Federal Reserve late last week reported that $9.862 trillion of 1-4 family mortgage debt was outstanding at the end of last year. It may not sound like much, but it marked the first time since ... [Includes one data chart]
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