Real estate investment trusts that specialize in residential mortgage credit continued to add to their MBS holdings during the fourth quarter of 2017, according to a new Inside MBS & ABS ranking.
Rising interest rates can be a two-edged sword for MBS-investing real estate investment trusts: prepayment speeds will inevitably fall (the good), while new securities to buy could be in short supply thanks to lower originations in the primary market (the bad).
Ginnie Mae is exploring the possibility of loan-level credit risk sharing with the private sector on FHA-insured loans securitized through the agency, according to a top Ginnie Mae official.
Federal Housing Finance Agency Director Mel Watt has less than 11 months left in his term, but already the speculation has begun regarding who the Trump administration might pick to succeed him.
Risk-sharing transactions from the government-sponsored enterprises are experiencing strong demand at issuance as well as in secondary trading. Officials at Fannie Mae and Freddie Mac note that they’re working on further improvements for the Connecticut Avenue Securities and Structured Agency Credit Risk programs.
The Securities and Exchange Commission has broadened the scope of an exemption for registering as an investment company to include sponsors of multiple securities that hold whole mortgages.
Alternatives to traditional appraisals are attracting increasing interest among U.S. mortgage market participants, which would potentially weaken the credit quality of new residential MBS, according to rating service analysts.
Fannie Mae and Freddie Mac shareholders who are contesting the government’s net worth sweep may have few options left now that the Supreme Court of the United States has rejected their plea for appeal of lower court rulings that went against them.
Fannie Mae and Freddie Mac reduced their combined mortgage portfolios to $484.2 billion during the fourth quarter of 2017, according to an Inside MBS & ABS analysis.
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