Ginnie Mae remains a very good profit center for MBS issuers and investors, making government-backed lending appealing and beneficial to consumers, according to securitization experts. Government loans offer great value to lenders because they cover broader borrower eligibility than conventional loan products and lenders can execute more efficiently, said panelists at the Mortgage Bankers Association’s annual conference this week. The discussion focused on government loan programs – FHA, VA and Rural Housing Service – and on execution options for the loans and their mortgage servicing rights (MSRs). CMG Financial has found...
Committee Chairman Tim Johnson, D-SD, said the structure of the government guaranty for MBS “must be explicit, appropriately priced, and stand behind private capital that is not guaranteed.”
Citigroup Global Markets Realty is preparing to issue a non-agency jumbo mortgage-backed security next week, according to a preliminary term sheet provided to Inside Nonconforming Markets. The issuance would come just two weeks after Shellpoint Partners scrapped a planned jumbo MBS because of tepid investor demand. Blackstone is also offering the first securitization backed by rental proceeds from real estate owned properties and Freddie Mac is preparing its second non-agency risk-sharing transaction ...
JPMorgan Chase’s settlement with the Federal Housing Finance Agency regarding representation and warranty claims on non-agency mortgage-backed securities could prompt large settlements by other banks, according to industry analysts. Chase agreed last week to pay $4.0 billion to settle claims on $33.8 billion of non-agency MBS purchased by Fannie Mae and Freddie Mac. The securities were issued between 2004 and 2007 by Chase, Bear Stearns and Washington Mutual. The settlement sets a “relatively high bar” for ...
Lenders are urging federal regulators to conform the definition for qualified residential mortgages with the qualified mortgage standards established by the Consumer Financial Protection Bureau. While regulators suggested that stricter standards for QRMs would prompt securitizations of non-QRMs, lenders warn that such standards would be onerous and likely significantly reduce non-agency mortgage originations and securitization. The Dodd-Frank Act requires federal regulators to establish risk-retention ...
FY 2013 Actuarial Report to Congress on the State of the MMIF Delayed. Release of the FY 2013 actuarial audit of the FHA Mutual Mortgage Insurance Fund will be delayed because of the recent government shutdown, according to a government source. No other details were provided. The FHA recently notified Congress that it would seek a mandatory appropriation of approximately $1.7 billion to bolster its capital reserves for expected future losses. FHA officials said the draw does not suggest anything dire but is simply a matter of ...
During a Q&A session at the convention, MBS co-inventor Lew Ranieri said there is no “viable” alternative to Fannie Mae and Freddie Mac, noting that if the two disappear banks will not rush to put 30-year fixed rate loans on their books.
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