Earlier this year Cherry Hill agreed to buy Aurora Financial Group and its $700 million servicing portfolio for $4 million. Included in the purchase was Aurora’s agency approvals.
Overall non-agency MBS issuance dipped slightly in the first quarter of 2015, but the jumbo mortgage sector hit its biggest production volume since the financial crisis in late 2008, according to a new Inside MBS & ABS analysis and ranking. A total of $21.94 billion of non-agency MBS were issued during the first three months of this year, down 0.2 percent from the fourth quarter. The lion’s share of these deals were backed by seasoned loans, either ... [Includes two data charts]
In an effort to convince large investors to buy AAA tranches of non-agency MBS, the benchmark transaction under development with help from the Treasury Department will include a deal agent or transaction manager. “Part of the centerpiece [of the non-agency MBS benchmark transaction] is around the role of a new player in these transactions, an independent deal agent that represents the interests of the investors,” said Michael Stegman, counselor to the Treasury ...
The market impact of high prepayment speeds in recent months has been muted due to the Federal Reserve’s large holdings of agency MBS serviced by nonbanks, according to industry analysts. However, the increased presence of nonbank servicers in agency MBS has prompted adjustments by investors. Loans in agency MBS serviced by Quicken Loans and Provident Financial, among other nonbank servicers, have recently been prepaying at ...
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