The Federal Home Loan Bank of New York and MAX Exchange announced a pilot program that will allow members of the New York FHLBank to sell jumbo whole loans on an open exchange platform. MAX Exchange is a peer-to-peer trading platform and clearing house for mortgages. The pilot program will include a limited number of pre-approved traditional secondary mortgage investors and a limited number of New York FHLBank members ... [Includes six briefs]
Ocwen Financial had a rough 2014, but officials at the nonbank suggest the company will be profitable in 2015 and beyond. Ocwen faces a number of outstanding issues, including questions from an independent auditor regarding the nonbank’s ability to operate as a going concern. Ocwen reported a preliminary net loss of $546.29 million in 2014 compared with net income of $310.42 million in 2013. Officials at the nonbank said the loss for 2014 incorporates the impact of ...
Use of a deal agent in new non-agency mortgage-backed securities will help convince large investors to return to the market, according to industry participants. The benchmark non-agency MBS in the works with help from the Treasury Department will include a deal agent, according to Michael Stegman, counselor to the Treasury on housing finance policy. At a talk this week hosted by the Financial Services Roundtable and CoreLogic, Stegman noted that Treasury continues to ...
The latest jumbo mortgage-backed security from Two Harbors Investment is set to have the lowest credit enhancement levels of any deal issued this year, according to an analysis by Inside Nonconforming Markets. Strong performance and underwriting characteristics along with repeat issuance appears to have helped decrease credit enhancement requirements for the transaction. The $241.06 million Agate Bay Mortgage Trust 2015-3 received a preliminary AAA rating ... [Includes one data chart]
Laurie Goodman, director of the Urban Institute’s Housing Finance Policy Center, is among those who support Treasury’s push to include a deal agent in the benchmark non-agency MBS.
In the jumbo MBS sector, mortgage firms issued $4.60 billion of bonds in 1Q, a hefty 20.3 percent increase from 4Q and more than triple the volume posed during the first three months of 2014.
Vintage prime adjustable-rate mortgages went delinquent at a rate 30 percent higher when they were securitized privately, according to an economist with the Federal Reserve System. The study was based on mortgages originated in 2005 and 2006, at the height of the aggressive underwriting in the non-agency mortgage market. “We find that private-securitized loans perform worse than observably similar, non-securitized loans, which provides evidence for adverse selection ...
The Community Home Lenders Association wants a portion of the quarterly profits that Fannie Mae and Freddie Mac give to the Treasury Department put in a reserve account to help smaller mortgage lenders, according to a recent letter the trade group wrote to Treasury Secretary Jack Lew. The group contends that the Preferred Stock Purchase Agreement funds should be set aside in a reserve account to capitalize a cash window for smaller mortgage lenders that would ...
High guarantee fees and loan-level pricing adjustments charged by Fannie Mae and Freddie Mac are not enough to counteract lingering MBS investor mistrust and draw private players back into the housing finance market, according to a top industry official. “The Federal Housing Finance Agency seems to believe that by raising costs for loans purchased or guaranteed by the government-sponsored enterprises, they can lure private sector capital back to the mortgage market ...
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