In June of last year, DeMarco co-authored a Milken Institute white paper entitled “Why Housing Reform Still Matters." In it, he argues: "…we need to preserve the liquidity and capacity of an active, globally financed MBS market…”
One trade group said Phillips has already reached out to the industry, gathering opinions on key issues facing the market, including Fannie and Freddie…
As first quarters go, the start to 2017 was relatively strong, but total issuance was down sharply from the previous period, a new Inside MBS & ABS analysis and ranking reveals. The market produced a total of $394.08 billion of residential MBS and non-mortgage ABS during the first three months of 2017, an 18.5 percent decline from the fourth quarter of last year. Production, however, was up 23.7 percent from the same period a year ago, and it was the strongest start since the first quarter of 2013, when agency mortgage refinance activity was running white-hot. In 2017, the agency MBS sector is...[Includes three data tables]
For years, officials at the Federal Reserve seemed nonchalant about coming up with a final exit strategy for the U.S. central bank’s massive holdings of agency MBS and debt and Treasury Securities, currently valued at approximately $4.5 trillion. But now, in relatively short order, the prospect of the Fed beginning to reduce its holdings has become a “thing” – so much so, in fact, that officials there reportedly are starting to put together just such a plan. The likelihood of such a move suddenly got much stronger when the Commerce Department announced late last week that the personal-consumption expenditures price index rose 2.1 percent from a year ago. The Fed has been striving to achieve 2 percent inflation for at least the last five years, and now appears to have the green light it has been waiting for. According to various press reports, the Fed’s plan would entail...
State attorneys general from Delaware and Massachusetts announced a $25.9 million settlement last week with Santander Consumer USA Holdings involving subprime auto ABS. The settlement relates to post-crisis activity and the AGs said it was the first settlement with state AGs relating to subprime auto loan funding. The office for Massachusetts Attorney General Maura Healey said the settlement is part of the AG’s ongoing review of securitization practices in the subprime auto market. “We found...
Golden State Tobacco Securitization Corp. is preparing to issue a $618.8 million ABS backed by revenues from a tobacco settlement reached in 1998. Several states have issued such deals, though the sector received a blow last year when Fitch withdrew its ratings and criteria for tobacco ABS. Under the settlement with 46 states and Washington, DC, the major cigarette manufacturing companies must make payments to each state annually, in perpetuity. The payments are based on cigarette sales, among other factors. At the time of the settlement, the revenues for states were estimated to be $306.0 billion for the first 25 years of the agreement. States can issue...
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