Sen. Elizabeth Warren, D-MA, wants the Federal Housing Finance Agency to delay any decision regarding contesting homeowner association foreclosures that will extinguish Fannie Mae and Freddie Mac rights under controversial state super-lien laws. Warren, who co-signed a letter to FHFA Director Mel Watt in May with Sen. Edward Markey, D-MA, and eight Massachusetts lawmakers, wants the FHFA to first solicit public comments on the potential change in policy. Under super-lien laws in 22 states, including Massachusetts, and the District of Columbia community associations are given...
Moody’s Investors Service assigned its first “Green Bond Assessment” last week to an MBS backed by Dutch mortgages that were selected on the basis of the underlying properties’ energy efficiency. The rating service said it expects future “green transactions” from issuers such as financial institutions and governments. “Green bonds” are securities that raise capital for use in financing or refinancing projects and activities with specific climate or environmental sustainability purposes. Moody’s said green bonds include securitizations collateralized by projects or assets whose cash flows provide the first source of repayment, debt obligations with direct recourse to issuers and project finance or revenue bonds. Green Storm 2016 B.V. received...
The letter is meant to counteract correspondence sent earlier in the week to Watt from 10 trade organizations and community groups that want the GSEs to build capital...
Redwood Trust is preparing to issue a $344.89 million jumbo mortgage-backed security next week, according to a presale report from Kroll Bond Rating Agency. Most of the mortgages in the planned deal are subject to the TRID mortgage disclosure rule. The combined Truth in Lending Act/Real Estate Settlement Procedures Act rule from the Consumer Financial Protection Bureau took effect in early October. Since then, only one jumbo MBS has included TRID loans ...
Hopes for a resurgence of issuance of non-agency mortgage-backed securities backed by new mortgages appear to be tied more to banks than to steps Congress might take to reduce the government-sponsored enterprises’ footprint, according to industry analysts. Since the financial crisis, banks have largely opted to hold non-agency originations in portfolio instead of issuing MBS. According to an analysis by Bank of America Merrill Lynch, capital requirements have given banks ...
The public mortgage-backed security shelf recently filed by Redwood Trust was drafted with significant input from the Securities and Exchange Commission, according to a review of correspondence between the jumbo MBS issuer and the SEC. After Redwood’s new Form SF-3, which allows for $4.83 billion in MBS issuance, was published in mid-May, the SEC released four letters sent to Redwood during the drafting stage for the shelf. Redwood’s responses to the SEC’s inquiries were also ...
FHA originations rose significantly in the first quarter of 2016 from the same period last year even as VA loan production decreased slightly, according to an analysis of Ginnie Mae data. Lenders delivered $54.4 billion of FHA-insured loans to Ginnie Mae for securitization during the first three months, up 36.2 percent from the previous year. In contrast, the volume of VA loans securitized over the same period, $35.0 billion, fell 1.5 percent compared to the same period a year ago. A strong purchase-mortgage market drove FHA activity from January to March. The reduction in FHA’s annual insurance premium in January 2015 continued to have an impact on FHA’s purchase-loan market share. In 2015, FHA purchase originations accounted for $151.0 billion of the estimated $881.0 billion in total purchase originations (conventional and government single-family forward originations), according to ... [ 2 charts ]
Comparing 2005 with 2015, the share of loan applications from borrowers with low credit scores has declined at a greater pace than originations of mortgages to borrowers with lower credit scores, according to CoreLogic. “The decline in originations could be a result of potential applicants being either too cautious or discouraged from applying, more so than tight underwriting as the culprit in lower mortgage activity,” said Archana Pradhan, an economist at ... [Includes seven briefs]
A California-based mortgage lender and six senior executives have agreed to pay $12.7 million to the Securities and Exchange Commission to resolve allegations they schemed to defraud investors in the sale of residential mortgage-backed securities with a Ginnie Mae guarantee. The SEC complaint alleged that, from March 2011 to March 2015, Ginnie Mae issuer First Mortgage Corp. and its top executives pulled current performing loans out of Ginnie Mae MBS. The issuer falsely claimed that the loans were delinquent so that it could recycle them as newly issued MBS and sell them at a profit. FMC allegedly issued Ginnie Mae MBS prospectuses with false and misleading information by using a Ginnie Mae rule that allowed issuers to repurchase seriously delinquent loans. In addition, the SEC complaint alleged that FMC deliberately delayed depositing checks from borrowers who had been behind on ...
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