Investors would be more willing to buy AAA tranches of jumbo mortgage-backed securities if issuers would standardize their offerings, according to Michael Stegman, counselor to the Treasury Department on housing finance policy. While the Treasury and industry participants both currently have initiatives aimed at standardization, issuers haven’t been too willing to seek uniformity. In a speech last week, Stegman said that based on recent meetings with jumbo MBS participants ...
Fannie Mae and Freddie Mac sold some nonprime mortgage-backed securities during 2013 even though the government-sponsored enterprises have seen strong returns on these holdings in recent quarters. The GSEs held a total of $84.61 billion in nonprime MBS as of the end of 2013, according to a new analysis by Inside Nonconforming Markets. The holdings declined by 18.2 percent compared with the end of 2012 due to a combination of ... [Includes one data chart]
Ginnie Mae will begin scrutinizing issuers which, for reasons unknown, have not issued a single Ginnie Mae mortgage-backed security since obtaining their approval. Ginnie Mae President Ted Tozer said he is assigning staff to investigate the underlying cause of issuer inactivity. “We’re starting that process now to find out what their plans and objectives are to try to get a better handle on what’s going on,” he explained. With the growth in new issuers, agency staff has focused on making sure that newcomers are transitioning smoothly and are up to speed on what is happening in the mortgage securities market. But there are those that have remained inexplicably dormant. Tozer admits that agency staff is spread quite thin and the agency has been hiring more account executives lately to monitor all program participants to ensure there are not more early failures. New issuers typically go through a ...
A spokeswoman for the FHFA declined to provide any guidance on when a CEO or chairman might be named for the CSP. She noted: “The common securitization platform project is still in development,” adding that “We have neither final plans nor specific budgets at this time.”
Private-equity firms such as Orange Capital and EJF Capital have been gobbling up shares in PHH Corp. the past year, believing the stock is undervalued. Among other things, “smart money” investors have noticed that the liquidation value of its mortgage servicing rights almost equals the entire company’s market capitalization rate. But that doesn’t mean PHH Corp. will be successful in its attempt to unlock shareholder value by selling off parts of the company, including its mortgage banking franchise and automobile fleet business. “The only thing that’s certain about PHH is that it’s trading below book value,” said one mortgage executive who has conducted business with the firm. Late this week, PHH common was selling...
Freddie Mac has begun reviewing servicing-related violations of its program rules, issuing notices of defect for certain violations, mostly related to the conveyance of properties to the GSE with title problems.
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