Efforts to adopt certain consumer protections at both the state and federal levels will increase credit strength for ABS backed by Property Assessed Clean Energy programs, rating services said.
The U.S. Supreme Court decided this week that it’s not going to hear an appeal from Royal Bank of Scotland and Nomura Holdings, which were hoping to overturn an $839 million award ruling on an old MBS suit. This puts an end to a drawn out seven-year battle between the government and the two banks.
Credit Suisse issued a large prime non-agency mortgage-backed security this week with an unprecedented lack of disclosure: the single lender that provided loans for the deal wasn’t identified in presale reports. Fitch Ratings and Morningstar Credit Ratings placed AAA ratings on the $1.60 billion CSMC 2018-J1 Trust. It is the second largest post-crisis non-agency MBS backed by new originations. All of the loans in the deal were “acquired from a single originator in a bulk purchase ...
Several non-agency mortgage-backed securities closed before the end of the second quarter. A nonprime deal in the works from Verus Mortgage Capital could be issued early in the third quarter. JPMorgan Chase closed two non-agency MBS in June: a $938.2 million issuance backed by loans from Chase and other originators and a $490.5 million deal backed by a variety of seasoned mortgages originated by First Republic Bank. Some 59.2 percent of the mortgages in the larger Chase deal ...
Starwood Property Trust announced this week that it agreed to purchase up to $600.0 million of non-qualified mortgages originated by Impac Mortgage Holdings in the next 12 months. The real estate investment trust also revealed that it has already acquired $900.0 million of non-QMs from Impac. “We are excited to formalize our partnership with Impac, which we believe will help scale our opportunity to provide non-QM loans to high-quality borrowers while sourcing ...
A $329.1 million non-agency mortgage-backed security issued by Flagstar Bank at the end of May could be a trendsetter. The deal was backed solely by investment-property mortgages eligible for sale to the government-sponsored enterprises. Moody’s Investors Service noted that pricing policies set by Fannie Mae and Freddie Mac will likely encourage similar deals. “We expect to see more private-label securities backed by GSE-eligible investment-property loans,” the rating service said ...
Ginnie Mae will be working with FHA, VA and the U.S. Department of Agriculture to standardize origination policies and requirements for digital mortgages as it moves into the digital age of its secondary market business. Ginnie will coordinate with the agencies while developing technical standards for electronic closings, digital mortgage instruments and electronic vaults. All this work is part of the agency’s three-year strategy, Ginnie Mae 2020, to modernize its mortgage-backed securities program and platform, strengthen its counterparty risk management capability, and explore new ways to lower or eliminate risk from the system. As part of the modernization effort, Ginnie envisions a process that would allow it to accept digital promissory notes and other digitized loan files as eligible collateral for its MBS. It would encompass loan application through securitization. The plan calls for gradual implementation of ...
FHA purchase loan originations, which comprise the bulk of the agency’s business, declined during the first quarter of 2018 as mortgage interest rates continued to rise. Approximately $34.8 billion in FHA-insured purchase mortgages were made during the first three months, down 13.5 percent from the previous quarter. Purchase originations also fell 12.0 percent year-over-year, data showed. Purchase loans accounted for 71.1 percent of all FHA loans made to consumers in the first quarter. Fairway Independent Mortgage Corp. led all lenders with $880.8 million. This week, the benchmark 30-year fixed-rate mortgage rose by 1 basis point to 4.71 percent from last week, according to Bankrate’s weekly survey of large lenders. Four weeks ago, the rate was 4.64 percent. Over the past 52 weeks, the 30-year fixed has averaged 4.31 percent, Bankrate added. This week’s rate is 40 basis points higher than the ... [Charts]
Ginnie Mae will soon require issuers to undergo stress testing to see if they have the financial strength to withstand adverse circumstances or a severe economic downturn.The agency said it will soon begin phasing in stress testing, which would play a key role in issuer oversight and liquidity. The initiative is part of Ginnie’s effort to enhance the management of counterparty risk, one of the so-called three pillars of progress underlying the agency’s 2020 initiative. In addition to stronger risk management, the initiative aims to make significant technological improvements by 2020 and explore new opportunities to strengthen Ginnie’s MBS program. Issuers that meet the thresholds for required ratings will probably be the first ones to be stress tested, the agency said. Ginnie is also looking for ways to evaluate exposure to a single counterparty, relative to the counterparty’s financial health and the value of ...
RSS