Credit Suisse issued its latest jumbo mortgage-backed security at the end of August, a $404.62 million deal with originations from a wide range of lenders. CSMC Trust 2014-WIN1 was also structured in a more complex manner than most of the jumbo MBS issued in recent years. More than 30 lenders contributed to the deal, led by New Penn Financial with a 23.1 percent share, EverBank Financial (20.3 percent) and Quicken Loans (19.8 percent). The deal included two pools of fixed-rate loans. The pool backed primarily by 30-year mortgages accounted for 80.8 percent and a pool of 15-year mortgages made up the rest.
Officials at the Securities and Exchange Commission see the final rule on disclosures recently issued by the federal regulator as bringing major changes to the non-agency mortgage-backed security market. However, whether issuers will offer non-agency MBS subject to the disclosure requirements is largely in the hands of investors that have been willing to buy securities not subject to the SEC’s standards. Beginning in 2017, issuers of publically registered non-agency MBS will have to disclose 270 data points, mostly at loan level. The disclosure requirements in the SEC’s Reg AB2 rule do not apply to 144A offerings, although some observers expect the SEC eventually to extend them to private placements.
The Department of Housing and Urban Development is now qualifying investors for its sixth auction of non-performing loans (NPLs) amid nationwide protests calling for reform of HUD’s distressed note sale program. Single-Family Loan Sale SFLS 2014-2 includes 15,232 single-family, non-performing mortgages with a total unpaid principal of $2.3 billion. The sale consists of 10 loan pools ranging from $97 million to $825 million with collateral dispersed across the country, according to loan sale advisor DebtX. It is scheduled to bid on Sept. 30. On June 11, HUD sold a $4.8 billion portfolio of NPLs, the first of a two-part sale. The national offering consisted of approximately 23,200 loans divided into 16 pools ranging from $93 million to $1 billion. The loans are backed by properties across the ...
“If g-fee increases were being used to build up enterprise reserves, instead of being swept under the Treasury agreement, we would be more open to such increases,” said the CHLA.
Non-agency jumbo mortgage originations accounted for a historically high 19.4 percent of new lending during the first half of 2014, and the sector is steadily gaining ground, according to a new Inside Mortgage Finance analysis of big-ticket mortgage activity. During the second quarter of 2014, lenders originated an estimated $59.0 billion of mortgage loans that were too big to be financed through Fannie Mae, Freddie Mac or the FHA. That was up 34.1 percent from the first quarter, a noticeably bigger increase than the 25.5 percent jump in total mortgage originations for the period. Compared to last year, jumbo lending was...[Includes three data charts]
The Federal Housing Finance Agency appears to be all alone – for now – in its effort to prevent nonbanks from gaining access to the Federal Home Loan Bank system by using a captive insurance affiliate. The proposal would also change FHLBank membership rules for depository institutions. But already the proposed ban – issued for a 60-day comment period early last week – is coming under heavy fire from different factions of the mortgage industry, including the Council of Federal Home Loan Banks, real estate investment trusts and private-equity firms that own REIT stock. David Jeffers, executive vice president for the Council, said “widespread calls” for the comment period to be extended are...
Although the Federal Reserve has tapered its agency MBS purchases significantly, the central bank continued to grow its holdings during the second quarter.
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