Redwood Trusts latest non-agency jumbo mortgage-backed security, its eighth of the year, consisted of originations from 67 lenders. No lender accounts for more than 6.4 percent of the originations in the $460.16 million deal. The non-agency jumbo MBS issued this week received AAA ratings with credit enhancement of 7.10 percent on the top-rated tranche. The top contributors to the deal were George Mason Mortgage, Cole Taylor Mortgage, W.J. Bradley Mortgage Capital and PrimeLending, each accounting for ...
Lenders contributions to non-agency mortgage-backed securities could continue to be subjected to high levels of scrutiny as the rating services emphasize upfront due diligence. Standard & Poors recently cautioned investors in non-agency jumbo mortgage-backed securities from putting too much faith into the representations and warranties provided on new securities. The fact remains that we believe loan and borrower quality are the most important factors for evaluating residential MBS ...
A bill to reform the government-sponsored enterprises that is in the works in the Senate would reduce conforming loan limits at a much slower pace than many non-agency participants would like to see. Draft legislation from Sens. Bob Corker, R-TN, and Mark Warner, D-VA, has some bipartisan support in Congress, though it is unclear how far the bill will make it in Congress this year. The Secondary Mortgage Market Reform and Taxpayer Protection Act of 2013 would replace the Federal Housing Finance Agency with ...
Policymakers looking for a model to replace the government-sponsored enterprises should look no further than the non-agency jumbo market, according to Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee. We dont have to look overseas to see a well-functioning housing market without GSEs, he said at a hearing this week. Prior to the housing bust, the jumbo market was approximately 20 percent of the total housing market. There was capital, liquidity, competition ...
The Structured Finance Industry Group said it had substantive discussions with staff members at the Securities and Exchange Commission this week regarding loan-level data formats for mortgages. The SFIG said it plans to work with the Mortgage Bankers Association to potentially enhance the MBAs Mortgage Industry Standards Maintenance Organization data fields. The SFIG said it is considering pushing for MISMO standards to be used in the government-sponsored enterprises risk-sharing ... [Includes three briefs]
Speaking at a trade show gathering, the ABA's Chris Lewis urged bankers to educate upper management as well as front-line loan officers about the finer nuances of the Consumer Financial Protection Bureaus ATR rule.
Bank of America recorded $10.45 billion of mortgage repurchases and indemnifications during the first quarter of 2013, according to a new Inside Mortgage Trends analysis of recently released call report data.
Roughly $148 billion of single-family agency MBS were issued last month, down almost 3 percent from Aprils level. May was the slowest month for agency MBS issuance so far in 2013.