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.
Roughly 270 depositories reported some mortgage buyback activity for 2012 but overall repurchases fell to a four-year low. Is the worst of the problem now over?
Moody’s Investors Service issued a “special comment” this week to warn that the new non-agency jumbo MBS issued by JPMorgan Chase would not have received a AAA rating from Moody’s, had the firm been asked to rate the deal. The rating service raised concerns about representations and warranties and a lack of risk retention on the deal.
The securitization of commercial real estate property increased by 28.7 percent from 2011 to 2012 as the non-agency commercial MBS market posted its best year since the financial market collapse and agency securitization of multifamily mortgages hit a record high. (Includes one data chart)
New loan-level performance data released this month by Freddie Mac indicate that the impact of risk layering may be more significant than observers previously thought, according to analysts at Amherst Securities Group.
RSS