Fannie Mae and Freddie Mac securitization volume reached its highest level in nearly four years during the first three months of 2013, according to a new Inside Mortgage Finance market analysis and lender ranking. Ongoing strength in refinance activity was the key. The two government-sponsored enterprises securitized a total of $296.4 billion of refinance loans during the first quarter, accounting for a hefty 83.3 percent of their total business. It was the biggest wave of refi loans to hit the GSE market since the second quarter of 2009, when a whopping $373.7 billion of refinances were securitized by Fannie and Freddie – before the Home Affordable Refinance Program reached its stride. While GSE refi business was...[Includes three data charts]
Applications for purchase mortgages surged last week as FHA borrowers rushed to get their applications in before April 1, when higher FHA annual insurance premiums took effect, according to the Mortgage Bankers Association’s latest weekly survey of mortgage loan applications. The boost in total purchase applications for the week ending March 29 was fueled by a nearly 7.0 percent increase in government-backed purchase applications, the MBA noted. “This [increase] was likely driven by borrowers applying for loans prior to the scheduled increase in FHA premiums that took effect on April 1,” said Mike Fratantoni, the MBA’s vice president of research and economics. “On a year-over-year basis, purchase applications are up about 4 percent, in line with the trend we are seeing in home sales volume.” The 10 percent annual premium increase, the third in two consecutive years, applies...
Production of new non-agency MBS and non-mortgage ABS increased sharply in the first quarter of 2013, offsetting a slight decline in the agency MBS market. Total MBS and ABS issuance rose 2.9 percent from the fourth quarter of 2012 to $515.3 billion during the first three months of 2013, according to a new Inside MBS & ABS analysis and ranking. The first quarter of this year was up 19.7 percent from the same period in 2012, and it marked the strongest quarterly issuance since the third quarter of 2009. For a change, the increase did not come...[Includes two data charts]
The Structured Finance Industry Group formed as a non-profit company about a month ago and is working to set up an infrastructure to compete with the American Securitization Forum. The group said its initial efforts will focus on hiring an executive director, advocacy and arrangements for an industry conference. The SFIG was formed by major securitization industry players frustrated with the governance of the ASF. While the SFIG has been careful not to publicly compare itself with the ASF, three of the SFIG’s four initial officers were previously board members of the ASF and the group shares a number of goals with the ASF. Reginald Imamura was named...
The Treasury Market Practices Group announced last week that a margining recommendation for agency MBS initially set to be implemented in June will be delayed until the end of 2013. The provisions apply to primary dealers working with four broad categories of forward-settling agency MBS transactions as part of an effort to manage counterparty exposures. The implementation date was delayed in response to concerns from market participants. Timothy Cameron, managing director and head of the Securities Industry and Financial Markets Association’s asset management group, said buy-side participants need to negotiate agreements for each of their accounts, which can include thousands of documents. “It is clear many market participants will not be able...
The International Accounting Standards Board has proposed an accounting treatment that would force holders of all but the most senior tranche of an MBS to account for those assets at fair value through net income – something that has the Mortgage Bankers Association expressing concern. The MBA generally supports the introduction of fair value through an “other comprehensive income” (OCI) classification for financial assets held within a business model in which assets are managed both in order to collect contractual cash flows and for possible sale, according to James Gross, vice president of financial accounting and public policy for the trade group. However, the MBA has...
A white paper issued last week by the Securities Industry and Financial Markets Association recommends that a Securities and Exchange Commission mandated, but still nascent, automated securities monitoring system should and will eventually incorporate ABS and MBS products into its field of supervision. Last summer, the SEC approved a final rule requiring national securities exchanges, known as SROs, to establish a consolidated audit trail. The SEC rule requires securities exchanges and securities associations to submit to the SEC a plan to create a CAT system that will capture information regarding securities quotes and orders. In particular, the CAT system will have to track...
Fannie Mae received high, but not quite perfect, marks from the Federal Housing Finance Agency in its compliance with the FHFA’s Conservatorship Scorecard.
Sellers of 'flow' and 'bulk' mortgage servicing rights are seeing a noticeable increase in prices for their MSRs as buyers chase both quality and bargains.
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