Critical components of loan structural quality in the commercial MBS space seem to be deteriorating, particularly when it comes to single-borrower deals, according to a new report from Moody’s Investors Service.
The government-sponsored enterprises both ended 2017 with record-setting numbers in the mul-tifamily market. Freddie Mac issued $68.0 billion in multifamily securities last year, up from $51.2 bil-lion the previous year.
Issuance of non-agency mortgage-backed securities backed by new originations increased on an annual basis in 2017, with gains from prime jumbo MBS and expanded-credit MBS, according to a new ranking and analysis by Inside Nonconforming Markets. A total of $10.88 billion of prime jumbo MBS was issued during the year, up 16.7 percent from 2016. Expanded-credit MBS – which include mortgages with alternative documentation, non-qualified ... [Includes one data chart]
Redwood Trust is set to issue two prime jumbo mortgage-backed securities in January, according to presale reports published this week. Issuance of two similar deals in quick succession by one firm is relatively uncommon, but Redwood appears to see strong demand from investors and has mortgages to sell. Sequoia Mortgage Trust 2018-1, a $341.25 million issuance, is scheduled to close on Jan. 19. A $462.01 million MBS, Sequoia Mortgage Trust 2018-2, is penciled in for Jan. 25 ...
After issuing nonprime mortgage-backed securities with post-crisis record-breaking sizes, the latest deal from Lone Star Funds will be slightly smaller. The firm is set to issue a $401.21 million nonprime MBS this month, according to presale reports by DBRS and Fitch Ratings. COLT 2018-1 Mortgage Loan Trust follows a $426.18 million issuance from Lone Star in September. That was the largest nonprime MBS backed by post-crisis originations. All of the loans in the previous issuance ...
DoubleLine Capital, an investor in non-agency mortgage-backed securities, established an entity in recent months with plans to issue non-agency MBS. The issuance and related activities will be conducted via the new Mortgage Opportunities Capital, according to filings with the Securities and Exchange Commission. The filings were completed in October but didn’t gain prominence until a recent story published by Bloomberg. Jeffrey Gundlach, DoubleLine’s CEO, initially pushed back ...
Institutional investors are getting more comfortable with non-qualified mortgages, according to Angel Oak Capital Advisors. The firm announced last week that it raised $291 million in capital commitments for a private credit fund that will focus on non-QMs. The initial fundraising goal for Angel Oak Real Estate Investment Fund I was $250 million, according to AOCA. Officials weren’t willing to disclose how the fund will invest in non-QMs, but it has been involved in non-agency ...
Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]
Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan-churning problem. Lenders urged Congress and the two agencies to be cautious in prescribing fixes that could potentially cut off VA funding. Jeffrey London, director of the VA Loan Guaranty Service, said a proposed rule that includes a net tangible benefits test for veterans as well as seasoning and recoupment requirements will be issued soon. The VA is also planning to require upfront lender disclosure of the terms and benefits of a streamline or cash-out refi, including the recoupment period of the new transaction. Even though serial refinancing is not systemic to the VA portfolio, it has grown in ...
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