Single-family rental securitization is increasing as spreads have recovered after sell-offs seen earlier this year, according to analysts. While issuance volume will likely be down this year compared with recent years, various factors point to relatively strong issuance of SFR securities going forward. Through September, $2.70 billion in SFR securities had been issued in 2016, according to commercial MBS data tracked by Inside MBS & ABS. That compares to $7.17 billion for all of last year. While issuance has lagged this year, Ying Shen, a research analyst at Deutsche Bank Securities, said...
Bayview Financial is set to issue the first re-securitization backed by subordinate tranches from risk-sharing deals issued by Fannie Mae and Freddie Mac. Fitch Ratings placed an A-minus rating on the planned $159.60 million Bayview Opportunity Master Fund IVb Trust 2016-CRT1. The transaction is backed by 12 securities from Fannie’s Connecticut Avenue Securities transactions and Freddie’s Structured Agency Credit Risk transactions issued in 2014 and 2015. The securities in the re-securitization are CAS M2 and STACR M3 tranches. All but one of the underlying securities rely...
The Consumer Financial Protection Bureau’s proposal to clarify a number of aspects of its TRID disclosure rule does not adequately resolve most of the non-agency secondary mortgage market’s concerns about legal liability, Pacific Investment Management Company said in a recent comment letter to the CFPB. The regulation was designed to harmonize consumer mortgage disclosures, but its unintended consequences have caused big problems in the non-agency secondary market. “The [TRID] rules have raised...
Thanks to increasing market demand and two expansions of their scorecard caps courtesy of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac could do more than $100 billion in combined issuance of multifamily MBS by the end of 2016 – if they have a strong December, that is. According to Inside MBS & ABS figures, Fannie’s new multifamily MBS issuance in the first nine months of 2016 was up 18.4 percent from the same period last year. Josh Seiff, vice president of multifamily capital markets and trading at Fannie, was...
The U.S. mortgage market produced an estimated $580.0 billion of first-lien originations during the third quarter of 2016, according to a new Inside Mortgage Finance analysis and ranking. That was up 13.7 percent from the second quarter, and it marked the strongest origination cycle since the fourth quarter of 2012, when $584.0 billion of new loans flowed through the pipes. The robust third quarter brought year-to-date originations to $1.470 trillion, up 8.9 percent from the first nine months of 2015. Lender feedback and agency mortgage-backed securities data suggest...[Includes two data tables]
Late this week or early next, Ginnie Mae is expected to release a new and improved acknowledgement agreement, a move intended to allow nonbanks to borrow more easily against the asset value of their mortgage servicing rights. But the big question remains: Will the agency’s tweaks have much of an impact on liquidity? There is...
Ginnie Mae President Ted Tozer noted that investor participation “depends, in part, on a level of confidence that investment returns can be expected to be reasonably aligned with market conditions.”
“Agency MBS prepayment speeds slowed in September, but they still hover near the multi-year highs reached last month,” according to a report from Keefe, Bruyette & Woods.
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