The overall mortgage securitization fell sharply in the second quarter of 2018 as Fannie Mae and Freddie Mac MBS issuance failed to keep pace with a surge in conventional-conforming mortgage originations in the primary market. During the second quarter, just 65.8 percent of newly originated mortgages were pooled in MBS, down from 71.7 percent in the first three months of the year and a 70.3 percent rate for all of 2017, according to a new Inside MBS ... [Includes one data chart]
Issuance of expanded-credit MBS is booming but total volume remains relatively small as major investors continue to avoid the sector. Investors such as Blackrock and PIMCO are looking for improvements to representations and warranties, according to industry participants. Eric Kaplan, director of the housing finance program at the Milken Institute’s Center for Financial Markets, said some big investors prefer to acquire expanded-credit loans, such as non-qualified mortgages, as whole loans ...
The ABS East conference this week had its highest attendance in the 24-year history of the event, with investors looking for MBS and ABS that offer attractive yields. Nearly 5,000 people registered to attend the conference this year, according to Jade Friedensohn, a managing director of the structured finance division of Information Management Network, which produced the event in Miami Beach. Attendance in the previous two years was dampened by a hurricane and concerns about the Zika virus ...
However, bankers and advisors who ply their trade in the MSR market have told Inside Mortgage Finance there is adequate financing available to nonbanks.
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