One executive who’s involved with the working group said the new guidance from the due diligence firms will help the rating agencies identify "material" risk...
A lack of demand from investors continues to stymie efforts to revive issuance of non-agency MBS. While issuers have made concessions to potential investors, wide gaps remain in various areas. Some of the frustrations were discussed last week at the ABS Vegas conference produced by Information Management Network and the Structured Finance Industry Group. Diane Wold, a managing director at Two Harbors Investment, said that while non-agency MBS investors have repeatedly called for increased disclosure, issuers’ disclosure efforts sometimes go unnoticed. The Securities and Exchange Commission requires issuers to disclose results from third-party due diligence reviews at least five days before a non-agency MBS prices. The disclosures offer extensive loan-level details and are required for both publicly-registered deals and private ...
There’s got to be a better way for investors in non-agency MBS to communicate with each other than taking out ads in the Wall Street Journal, according to various attendees at the ABS Vegas conference produced by Information Management Network and the Structured Finance Industry Group. Owen Cyrulnik, a partner at the law firm of Grais & Ellsworth who has represented investors in buyback disputes, said non-agency MBS investors that have wanted to force buybacks have been “paralyzed” by the voting requirements in most non-agency MBS. The deals typically require a certain share of investors in an MBS – at least 25 percent of investors in many cases – to approve of actions. “It was literally impossible to find other certificate holders,” ...
Fannie Mae and Freddie Mac are wading into the testing phase for the Single Security initiative for to-be-announced MBS, and they agreed on common names for the new product. The first-level securities – the equivalent of Fannie’s MBS and Freddie’s participation certificates – will be called “Uniform MBS.” The second-level deals – replacing Fannie’s Megas and Freddie’s Giants – will be known as “Supers.” Fannie has already registered the trademarks for these names. It appears that domain names for both, at least the .com variety, have been grabbed up. Both government-sponsored enterprises continue to prepare for conversion, and Common Securitization Solutions continues to release software for system-to-system testing, according to the Federal Housing Finance Agency’s 2015 Scorecard Progress Report released late last week. These ...
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