As banks cede market share to nondepositories, an odd thing is happening: banks and thrifts are hiking their investment in MBS.

A handful of firms broker TRID scratch and dent loans, including Rincon Mortgage Trading, Mortgage Delivery Specialists and Spurs Capital.

Non-traditional forms of credit also will be taken into account on the new product

Thanks to the MIP cut, it looks like FHA is stealing business away from Fannie Mae...

Commercial banks and savings institutions continued their buying spree in the MBS market during the fourth quarter of 2015, according to a new ranking and analysis by Inside MBS & ABS. Banks and thrifts held a record $1.644 trillion of residential MBS in their available-for-sale and held-to-maturity portfolios as of the end of last year. That was up 2.2 percent from the third quarter and represented a 6.8 percent gain over 12 months. All of the increase came...[Includes two data tables]

Mortgage originators selling loans into MBS last week likely were hit with “pair-off” fees from secondary-market investors who were expecting delivery of higher-yielding mortgages, a proposition complicated by the sudden downdraft in rates. As one secondary market executive noted: “A forward sale into an MBS is not a perfect hedge. Then again, nothing is a perfect hedge.” Originators that fund billions of dollars each quarter use...

Secondary market participants are once again urging government regulators to revise pending margin requirements for the to-be-announced MBS market, lest they negatively disrupt the space and possibly raise the cost of providing mortgage credit. At issue is SR-FINRA-2015-036, a proposal from the Financial Industry Regulatory Authority to establish margin requirements for the TBA market under FINRA Rule 4210. Previously, the Securities Industry and Financial Markets Association urged...

The proposed fiscal year 2017 Ginnie Mae staff budget will meet current operational needs, but staffing for the long term will have to be reevaluated, according to GNMA President Ted Tozer. Tozer said the proposed agency budget of $23 million for personnel costs, “along with leveraging contractors and carefully prioritizing hires,” will meet the agency’s current needs. However, officials will take a hard look at its staffing requirements “from a long-term, strategic point of view,” he noted. Tozer was reportedly disappointed...

Issuers and investors involved in the securitization market are pushing the Basel Committee on Banking Supervision to revise its proposed capital standards for “simple, transparent and comparable” securitization. The BCBS issued a proposal in November and the comment period closed this month. The Structured Finance Industry Group reiterated concerns about international regulatory efforts that will create a “patchwork” of standards and limit securitization, while others pushed back on the exclusion of synthetic transactions from the proposed criteria for STC transactions. “We continue...

Late last week, Moody’s Investors Service published an analysis detailing risks from mortgage warehouse securitizations. The warning was published days after a $225.0 million deal from Jefferies Funding was issued with a Aaa rating from Moody’s. Analysts at Moody’s stressed that securitized mortgage warehouse facilities face risks that differ from traditional residential MBS. The analysts said Station Place Securitization Trust 2016-1 from Jefferies addressed the risks, prompting the Aaa rating. Station Place was backed...