Look for increased volume of new non-agency mortgage-backed securities issuance and more companies issuing these deals in 2013, industry analysts say. Underwriting standards could loosen somewhat as investor demand strengthens. Through the beginning of December, $3.46 billion in non-agency jumbo MBS was issued in 2012, according to the Inside Mortgage Finance MBS Database. Redwood Trust accounted for 56.7 percent of that volume, with an affiliate of Credit Suisse Group accounting for the rest ...
Credit Suisses jumbo conduit is increasing its acquisitions and looking to issue more non-agency jumbo mortgage-backed securities, according to Luke Scolastico, a vice president at Credit Suisse. Were buying loans every day, he said last week at a panel discussion hosted by the American Securitization Forum. More last month than the month before, and more that month than the month before. Credit Suisse has issued $1.50 billion in non-agency MBS so far in 2012. While the first deals ...
The guaranty fees charged by Fannie Mae and Freddie Mac are close to hitting a tipping point where non-agency mortgage-backed security issuance will be the more economic execution for new originations, according to some non-agency participants. If the non-agency pricing is improving and the GSE pricing is worsening, at some point youre going to hit a tipping point, Luke Scolastico, a vice president at Credit Suisse, said last week at a panel discussion hosted by the American Securitization Forum ...
Fannie Mae and Freddie Mac, under directions from the Federal Housing Finance Agency, are close to issuing risk-sharing transactions, according to market participants. The securities will be structured to allow non-agency investors to take subordinate risk on government-sponsored enterprise mortgage-backed securities and will likely help set GSE guaranty fees going forward. Martin Hughes, CEO of Redwood Trust, said his company is currently under a non-disclosure agreement regarding risk-sharing ...
Investors in non-agency mortgage-backed securities are pushing back against a loan modification program proposed by the Obama administration that would target underwater loans backing their investments. Quite simply, investors have already been significantly harmed by the poor performance of many of the mortgage loans in non-agency MBS, and the Market Rate Modification proposal would only increase the severity of losses suffered by institutional investors, Tom Deutsch ...
Damage from Hurricane Sandy will have a negligible impact on mortgages in outstanding non-agency mortgage-backed securities, according to a new analysis by Opera Solutions. The servicing analytics provider said 45 non-agency MBS deals with $19.6 billion in outstanding balance have mortgages with exposure to significant damage from the storm and the likely affected balance is $6.0 billion. Based on a detailed analysis of each portion of affected ZIP codes, the ultimate exposure is much lower ... [Includes four briefs]
The distressed property share of home sales has decreased in each of the seven months ending in November, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, as short sales, real estate owned activity and investor purchases have become less prevalent. Distressed properties accounted for 33.7 percent of home sales in November, based on the three-month moving average, the lowest level seen in more than three years. Before the decline in distressed property activity, distressed property sales had hovered around 42.0 percent for more than two years. As housing prices rise and unemployment declines, there are...
The highly anticipated ability-to-repay rule from the Consumer Financial Protection Bureau is expected to perpetuate the status quo in the MBS market, with nearly all the action taking place at Ginnie Mae and the government-sponsored enterprises, according to speakers at a panel discussion hosted by the American Securitization Forum this week. The rule, which will provide legal protection for lenders that originate home loans meeting its qualified mortgage definition, will also likely continue the stream of plain vanilla mortgages that currently populate agency MBS. Edward Mills, a research analyst and senior vice president at FBR Capital Markets, suggested...
The dismissal of a lawsuit from non-agency MBS investors against the rating services was confirmed last week, including a ruling that ratings from Fitch Ratings, Moodys Investors Service and Standard & Poors were not negligent misrepresentations. The U.S. Court of Appeals for the Sixth Circuit confirmed the September 2011 dismissal of a lawsuit brought by investors led by the Ohio Police & Fire Pension Fund. The lawsuit related to 308 AAA-rated non-agency MBS issued between 2005 and 2008, with the investors taking losses of $457 million from the securities. The investors claimed...
Mortgage securitization rates remained at record levels through the third quarter of 2012, with 86.3 percent of primary market originations being financed as MBS, according to a new analysis by Inside MBS & ABS. A total of $1.15 trillion of MBS backed by recently originated loans were issued through the first nine months of the year, soaking up most of the $1.33 trillion in new production during that period. The market is on track to top the record 84.4 percent securitization rate set for the full year back in 2009, after two years in which the rate had drifted somewhat lower. During the third quarter, the securitization rate surged...[Includes one data chart]