Carrington Mortgage Holdings, which became a Ginnie Mae issuer last year, is eyeing the nonconforming market, but isnt ready to commit to any securitization plans, at least not yet. Company Executive Vice President Rick Sharga told Inside MBS & ABS that were looking at creating some non-agency products that serve borrowers whose credit has been damaged during the Great Recession, but who otherwise would be good loan candidates. Sharga noted...
It is 2013 and courtrooms across the country continue to hum with investor disputes over issuer liability for MBS investments that went bad. In its third lawsuit against JPMorgan Chase since mid-2011, the National Credit Union Administration is seeking millions of dollars in damages in connection with the packaging and sale of $2.2 billion in MBS issued by the now-defunct Washington Mutual to three corporate credit unions long before it was acquired by JPMorgan in 2008. Filed in Kansas federal court, the NCUA lawsuit alleged...
Although Congress and the presidents just-in-time agreement to forestall the fiscal cliff crisis, at least for a while, provided some mortgage market-friendly results, MBS investors still face some challenges in 2013, analysts say. The American Taxpayer Relief Act, H.R. 8, includes a one-year extension through Dec. 31, 2013, of the Mortgage Debt Forgiveness Act that exempts loan amounts forgiven by lenders and foreclosures from taxable income. Deductions on mortgage insurance premiums for borrowers making below $110,000 were extended through 2013 and made retroactive to cover 2012, as well. The combination of tax relief on mortgage insurance premiums and debt forgiveness should have...
Nationstar Mortgage announced this week that it agreed to purchase $113 billion in non-agency mortgage servicing rights, as measured by unpaid principal balance, from Bank of America. The sale will more than double Nationstars non-agency servicing portfolio. Some $102 billion in agency mortgages are included in the sale, which priced at $1.3 billion. Walter Investment Management concurrently announced the purchase of $93 billion of unpaid principal balance in Fannie Mae-backed servicing assets from BofA. Ocwen Financial also reportedly bid...
Redwood Trust is set to issue its first non-agency jumbo mortgage-backed security of the year, a portion of which will include ARMs and significant contributions from EverBank. The real estate investment trust said it is close to being able to issue one non-agency MBS a month this year, up from six in all of 2012. Sequoia Mortgage Trust 2013-1 largely includes characteristics common to other recent Redwood deals, including 7.30 percent credit enhancement for the two tranches set to receive AAA ratings from Fitch Ratings, Kroll Bond Rating Agency and Moodys Investors Service. However, ARMs have not been included in a Redwood deal since a January 2012 issuance. ARMs will account...
Servicers handling portfolio loans and non-agency mortgages continue to increase their use of principal reduction loan modifications, according to the Office of the Comptroller of the Currency. Some 23,335 principal reduction mods were completed in the third quarter, up from 11,178 in the third quarter of 2011 and from 14,944 in the second quarter of 2012. The mods accounted...[Includes four briefs]
Residential Capital, a former subsidiary of Ally and currently in Chapter 11 bankruptcy, has asked the court for permission to sell an estimated $130 million in FHA-insured mortgage loans. ResCap made the request in a recent filing with the U.S. Bankruptcy Court in Manhattan, which monitors and approves all of the beleaguered companys activities and requests during bankruptcy. According to the company, its unsecured creditors have signed off on the prospective sale of the FHA loans although the court would still have to approve the request during a scheduled hearing on Jan. 16. ResCap sought bankruptcy protection on ...
Ginnie Mae guaranteed more than $109.7 billion in mortgage-backed securities in the fourth quarter of 2012, with Wells Fargo and Chase Home Finance accounting for nearly half of the issuance, according to an Inside FHA Lending analysis of issuer data. Ginnie Mae issuers securitized 9.1 percent more in government-backed mortgages in the fourth quarter than in the previous quarter while issuance was significantly higher year-over-year, rising a whopping 44.8 percent. Although the top five Ginnie Mae issuers combined for 56.6 percent of the quarters total Ginnie Mae MBS production (Wells and Chase were on top with a combined 45.8 percent market share), 10 lower-ranked issuers posted ... [1 chart]
The Consumer Financial Protection Bureau this week spread a huge safety net under the agency mortgage market, ruling that loans deemed suitable for Fannie Mae, Freddie Mac, the FHA and the Veterans Administration will be qualified mortgages that provide strong protection against litigation for mortgage lenders. The CFPBs long-awaited ability-to-repay final rule provides a safe harbor for loans that meet its QM definition and also are not considered higher-priced mortgages under an older Truth in Lending Act regulation promulgated by the Federal Reserve back in 2008. That rule classifies first mortgages as higher-priced if the annual percentage rate exceeds the average offered rate for comparable loans by 1.5 percentage points or more. Generally, the CFPB final rule defines...
Now that Bank of America has inked a long-rumored deal to sell mortgage servicing rights on some $308 billion of distressed mortgages to Nationstar and Walter Investment Management, the question becomes how much more the bank may unload. The answer may be quite a lot. Paul Miller, an analyst with FBR Capital Markets, said that he anticipates the megabank will sell between $300 billion and $400 billion of MSRs by the time 2013 ends. According to Miller, the to be sold product includes $100 billion of Ginnie Mae servicing, $150 billion of Fannie Mae MSRs and $100 billion to $200 billion of Freddie Mac servicing. A BofA spokesman declined...[Includes one data chart]