First Republic Bank has contributed at least 21.3 percent of the loans that have been included in jumbo mortgage-backed securities issued in the first nine months of this year, according to a new ranking and analysis by Inside Nonconforming Markets. The bank was identified as having contributed $2.18 billion into jumbo MBS issued in the first three quarters of 2015, including $619.19 million in the third quarter. First Republic’s contributions to jumbo MBS issued in the third quarter alone topped the contributions of any other lender in the first nine months of the year. Jumbo MBS issuers and rating services generally disclose...[Includes two data tables]
Agency multifamily MBS issuance dropped more steeply, by 19.7 percent, but that was from the record $30.91 billion issued during the second quarter of this year.
In late December, issuers of new non-agency MBS will become subject to new risk-retention requirements. It’s not clear whether anyone will notice. The vast majority of loans securitized in jumbo MBS over the past few years meet the qualified-mortgage standard. And because federal regulators opted to synchronize the QM standard with the separate qualified residential-mortgage standard, jumbo MBS backed entirely by QMs will be exempt from the 5 percent risk-retention requirement. When the final rule came out, Redwood Trust backed...
New securitizations backed by commercial mortgages declined during the third quarter of 2015, but the market at the nine-month mark has nearly matched total issuance for all of last year, according to a new Inside MBS & ABS analysis. Some $49.62 billion of income-property mortgages were securitized during the third quarter of 2015, down 15.8 percent from the second quarter. However, with $162.18 billion of commercial mortgage securities issuance through the first nine months of 2015, the market is poised to reach its highest annual volume since the financial crisis when the year ends. Both sides of the market – non-agency CMBS and agency multifamily MBS – saw...[Includes one data table]
Banks and nonbanks, in general, are doing a better job of servicing “challenged” mortgages and MBS these days, according to a new report from Fitch Ratings. However, concerns remain. Fitch noted that residential servicing costs “continue to rise in concert with increased compliance focus and enhanced regulatory scrutiny.” Moreover, “Higher regulatory capital requirements may become a factor too, especially for smaller servicers.” Over the past two years, Fannie Mae, Freddie Mac and Ginnie Mae have all ushered...
Beach Point Capital Management early next week will issue a roughly $75 million MBS collateralized by nonprime mortgages that were originated over the past year by Citadel Loan Servicing, Irvine, CA, according to officials briefed on the transaction. As Inside MBS & ABS went to press this week, certain details on the security were beginning to leak out, including the fact that Nomura Securities “is running the book” on the deal, said one source. Wells Fargo will be the custodian and backup servicer. The privately held Citadel will continue to service the underlying loans. The yield on the private-place bond is...
A 10 basis point surcharge on Fannie Mae and Freddie Mac guaranty fees that went into effect in 2012 could end up being extended for another five years as lawmakers on Capitol Hill look for money to back the federal government’s Highway Trust Fund. The 10 percent increase in the government-sponsored enterprises’ g-fees was designed to pay for an extension of a federal payroll tax cut. It is currently scheduled to run to 2021, generating $35.7 billion in revenue, according to the Congressional Budget Office. With transportation funding set to expire Oct. 29, the House this week approved...
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