The government-sponsored enterprises’ credit-risk transfer programs have been wildly popular with investors and many policymakers, but other industry observers see problems. One of the most outspoken critics is Tim Howard, a former Fannie Mae CFO, who sees a big difference between today’s CRT programs and the GSEs’ traditional method of laying off credit risk before they were taken into government conservatorship. “When I was at Fannie, the companies purchased...
An affiliate of Verizon Communications will issue a $1.40 billion ABS backed by payment plans for cell phones, according to presale reports. It’s the second transaction of its kind from Verizon, with industry analysts projecting that issuance could increase due to widespread financing for cell phones and investor demands. Verizon Owner Trust 2016-2 received preliminary AAA ratings from Fitch Ratings and S&P Global Ratings. It’s larger than the $1.17 billion ABS Verizon issued in July and the senior tranche on the pending issuance includes slightly less credit enhancement, indicating increased comfort among rating services. The July issuance included...
Three financial-industry trade associations submitted a joint amici brief to the Supreme Court of the U.S. seeking an end to the confusion over whether extender statutes that refer only to the “statute of limitations” should apply to the “statute of repose” as well. The circuit courts are split on the issue, with four courts deviating from a 2014 SCOTUS ruling in CTS v. Waldburger, in which property owners tried to hold CTS Corp., operator of an electronic plant in North Carolina, liable for damages from toxic contaminants on the land. The property owners filed...
Commercial banks and savings institutions boosted their holdings of residential MBS substantially during the third quarter, a new analysis of call-report data by Inside MBS & ABS reveals.
The market for jumbo mortgage-backed securities looks to be regaining some momentum as Shellpoint Partners plans to resume issuance and market-leader JPMorgan Chase prepares another deal. Shellpoint’s New Penn Financial is set to issue a $353.68 million jumbo MBS next week, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. Shellpoint Co-Originator Trust 2016-1 will mark the first issuance from the MBS shelf since ...
Pricing has improved sequentially with each of the three jumbo mortgage-backed securities Redwood Trust has issued this year, according to officials at the real estate investment trust. Redwood’s most recent deal, a $343.16 million jumbo MBS, was issued in October. Christopher Abate, Redwood’s president and CFO, said it’s possible that the REIT will issue another jumbo MBS this year. Marty Hughes, Redwood’s CEO, added a caveat about uncertainty in the financial markets ...
A start-up is working to allow retirees and other individual investors to buy into non-qualified mortgages, a market that so far has been dominated by hedge funds and other large institutional investors, along with occasional inclusion in non-agency mortgage-backed securities. Brad Walker, CEO of Income&, said the new platform offers an alternative to traditional fixed-income investments. He said Income& is trying to create a higher-yielding, lower-risk fixed-income instrument ...
The Structured Finance Industry Group published the fourth edition of its “RMBS 3.0 Green Papers” this week. The trade group said it will release a fifth edition of the Green Papers in the coming weeks. The latest papers address various issues in the non-agency mortgage-backed security market, including representations and warranties, the concept of a deal agent and data disclosure. Moody’s Investors Service this month withdrew its assessment of ... [Includes two briefs]
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