According to an analysis by Fitch Ratings, the overall charges for a simple jumbo non-agency MBS across all note-holders would increase to between 6.3 percent and 8.2 percent under the new proposal.
Moody’s said the JPMorgan Mortgage Trust 2013-1 has a weak representations and warranties framework, a restrictive rep and warrant enforcement mechanism and a lack of risk retention by Chase.
With several new jumbo MBS deals in the works – from Redwood Trust, JPMorgan Chase and EverBank Financial – it would seem likely that a robust market might develop for the subordinate tranches of these transactions. But so far it’s been a case of plenty of interest in the instrument, but little in the way of available product.
FHFA's plan for a single MBS platform that would be managed by a new government entity separate from Fannie Mae and Freddie Mac does not mean the agency is contemplating consolidating the two GSEs at this time.
The number of active issuers of jumbo non-agency MBS effectively doubled this week as presale reports were released on pending deals from JPMorgan Chase and EverBank Financial, bringing more depth and diversification to a market that has slowly regained its footing over the past year.Chase is offering a $616.26 million non-agency jumbo MBS and provided 48.1 percent of the loans to be included in the security. The deal is set to receive AAA ratings from DBRS, Fitch Ratings and Kroll Bond Rating Agency with a 7.40 percent credit enhancement on the top-rated tranche.
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