On loans with LTVs ranging from 90 percent to 95 percent, for example, GSE pricing was better for all borrowers with credit scores over 620. But things are different now.
Issuers of non-agency MBS will likely continue to favor private placements over registering deals with the Securities and Exchange Commission, according to industry participants. While publicly registered deals in the ABS market and commercial MBS market are common, no non-agency MBS issued in 2014 was registered with the SEC. Instead, non-agency MBS issuers offered deals as 144A private placements. An official involved in the non-agency MBS market said...
Freddie Mac is set to sell a first-loss tranche on a Structured Agency Credit Risk transaction for the first time. The deal priced this week and the $880 million STACR 2015-DN1 is scheduled to settle next week. On previous STACR deals, Freddie has retained a tranche equaling at least the first 30 basis points of loss. Investor demand for the government-sponsored enterprises’ risk-sharing transactions has been strong but some have called for the GSEs to offer first-loss tranches, which can offer higher yields than the tranches that are more buffered from losses. Freddie said...
Sales of mortgage servicing rights by big banks will continue to be driven by the desire to reduce the handling of delinquent mortgages – not by Basel III capital requirements, according to analysts at Moody’s Investors Service. Nonbank servicers that have grown in recent years often cite Basel capital requirements as a significant factor in bank sales of MSRs. Warren Kornfeld, a senior vice president at Moody’s, noted that Bank of America, Citigroup and JPMorgan Chase were active sellers of MSRs in recent years. “We believe the sales were primarily motivated by their desire to reduce credit-impaired servicing volume,” he said. Under Basel III, banks face...
2014 wasn’t a great year for mortgage origination volume, but the market rallied from a dismal start to finish on a more positive note, according to a new Inside Mortgage Finance market analysis and ranking of top loan producers. Mortgage lenders originated an estimated $1.24 trillion in new home loans during 2014. That figure, which includes home-equity lending, was the industry’s lowest annual output since year 2000, when total originations barely topped the $1 trillion mark. Mortgage production fell a hefty 34.4 percent from 2013 levels, including a modest 1.4 percent drop in the fourth quarter of 2014. The soft fourth-quarter volume was...[Includes two data charts]
Two other servicing packages hit the market the past few days, including a seasoned $276 million Ginnie Mae portfolio from Interactive Mortgage Advisors.
According to the IMA offering circular, the seller is a “Southwest, independent mortgage banking entity with strong financials and a highly experienced senior management team.”
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