Credit Suisse sold two warehouse facility-backed securities this week totaling $800.0 million, according to Moody’s Investors Service. The rating service placed A2 ratings on the Mortgage Repurchase Agreement Financing Trust Series 2016-1 and Series 2016-2 transactions. Much like a warehouse facility security issued by Jefferies in May, Moody’s said the MRAFT securities are structured with two legs of “back to back” repurchase agreements. The first leg consists...
A total of $333.1 billion of residential MBS backed by freshly originated home loans were issued during the second quarter of 2016, a 30.3 percent increase over the first three months of the year. But that trailed the 34.2 percent surge in primary-market originations during the same period. The result was a further decline in the mortgage securitization rate, from 67.3 percent in the first quarter to 65.3 percent in the second, according to a new Inside MBS & ABS analysis. It marked the lowest securitization rate since 2004, when the non-agency MBS market was just beginning to take off. The biggest decline was...[Includes one data table]
Manufactured housing advocates are pushing for more government-sponsored enterprise support for manufactured lending, especially for chattel loans that are not considered mortgages because the loan is not secured by a dwelling and land. The issue has gathered steam as the Federal Housing Finance Agency works to finalize a “duty-to-serve” regulation for Fannie Mae and Freddie Mac that focuses on mortgage financing for very low-, low- and moderate-income families in rural areas and manufactured housing. Back in May, the Manufactured Housing Institute and representatives from both GSEs had discussed...
Moody’s Investors Service has asked the U.S. District Court for the Southern District of New York to dismiss the remaining claim in a lawsuit alleging manipulation of credit ratings leading up to the financial crisis. In its motion to dismiss, Moody’s said that plaintiff Ilya Eric Kolchinksy’s second amended complaint fails to show that the rating agency used its electronic “ratings delivery service” to issue false ratings on MBS that later turned bad. In 2012, Kolchinsky, a former managing director at Moody’s, filed...
The market for mortgage-backed securities backed by newly originated nonprime mortgages received a jolt this month as Angel Oak Capital Advisors and Deephaven Mortgage separately issued new deals, according to offering documents obtained by Inside Nonconforming Markets. Angel Oak Mortgage Trust I, LLC 2016-1 was backed by mortgages with an unpaid principal balance of $132.65 million and Deephaven Residential Mortgage Trust 2016-1 was ...
JPMorgan Chase is preparing to issue a $302.27 million jumbo mortgage-backed security where non-qualified mortgages will account for 20.2 percent of the loan balance, according to presale reports. All of the mortgages in the planned JPMorgan Mortgage Trust 2016-2 were originated by First Republic Bank via the retail channel. Most prime MBS issued since QM standards took effect in 2014 have been backed solely by QMs and the few deals that have included non-QMs tend ...
Redwood Trust has no plans to suspend issuance of jumbo mortgage-backed securities, according to Kristin Brown, a vice president and head of investor relations at Redwood. The Redwood official was responding to a report by Asset-Backed Alert, which cited anonymous sources claiming that the real estate investment trust will issue a jumbo MBS during the third quarter then “pull back from the market indefinitely.” Brown said that while additional transactions are always ...
The new nonprime mortgage-backed securities from Angel Oak Capital Advisors and Deephaven Mortgage included a number of mortgages with compliance issues relating to the TILA-RESPA Integrated Disclosure rule, according to offering documents obtained by Inside Nonconforming Markets. Part of the compliance issues stem from the ongoing uncertainty regarding cures for minor errors. While the Consumer Financial Protection Bureau issued a proposed rule ...
RSS