A number of significant former members of the American Securitization Forum are working to form a new trade group, with a formal announcement possible as soon as this week. Meanwhile, Tom Deutsch, executive director of the ASF, said his group continues to work with more than 300 members. As many as 30 firms could be a part of a new securitization trade group, with the name “Structured Finance Industry Group” being considered. Wells Fargo has confirmed that it will be a member of the new group. Other firms that recently quit the ASF’s board or otherwise ended their membership with the ASF include...

An Alt A MBS investor won a court order temporarily restraining Nationstar Mortgage from auctioning off nonperforming loans from its MBS pools, a development that could result in a legal precedent being established on the practice, if it’s not already too late to matter. Back in February, Nationstar began auctioning NPLs on auction.com, according to a civil complaint filed by the investor, KIRP LLC, in the Supreme Court of New York. There are currently two additional auctions totaling some $750 million of NPLs listed on the internet auction site, both believed to be related to Nationstar. The company is...

Credit Suisse issued a $422.2 million non-agency jumbo mortgage-backed security last week with some of the loans in the private placement sourced from Two Harbors Investment. Two Harbors – a real estate investment trust that has been working to issue its own non-agency MBS for more than a year – is also expected to be the initial investor in the subordinate tranche of the MBS. CSMC Trust 2013-TH1 received AAA ratings from DBRS, Fitch Ratings and Standard & Poor’s, with 7.05 percent credit enhancement ...

Fannie Mae and Freddie Mac have been content to let their significant holdings of non-agency mortgage-backed securities run off in recent years as opposed to selling the investments at a loss. However, the government-sponsored enterprises will likely have to sell some of their vintage non-agency MBS due to a mandate from the Federal Housing Finance Agency. A set of goals for the GSEs in 2013 released this week by the FHFA includes reducing the GSEs’ retained portfolio balances by selling 5 percent of the assets ...

The Department of Housing and Urban Development said it will share information soon on the estimated impact of mandatory, across-the-board spending cuts on HUD/FHA programs and their recipients. A HUD spokesman declined to put a sequestration tag on all affected programs, including FHA, saying details would be available as soon as the department notifies all HUD funding recipients of automatic spending cuts that went into effect last week. The mandatory cuts to defense and discretionary spending kicked in after Congress failed to enact a plan to reduce the deficit by $1.2 trillion over 10 years, as required by ...

Banks with major Ginnie Mae portfolios – and even smaller firms – increased their purchases of delinquent mortgages out of MBS pools in the fourth quarter compared to the third as a way to save money and refinance troubled loans. According to an analysis by Inside FHA Lending, the top 50 Ginnie Mae issuers bought $12.65 billion of problem loans out trusts in fourth quarter compared to $11.17 billion in the third, an increase of 13 percent. “Once you buy the loan it goes into your portfolio,” said Tim Rood, a partner in The Collingwood Group, a Washington-based advisory firm. “You can try to re-perform it and then re-securitize it,” he said. Wells Fargo, the largest Ginnie Mae servicer in the nation with a portfolio of $412 billion, purchased ... [1 chart]

Billions of dollars in mortgage servicing rights have changed hands over the past two years – and the selling is far from over. The question now is how much more will be sold by the end of 2013. According to analysts who cover nonbank buyers of MSRs – and other sources – $1 trillion to $1.5 trillion in rights could transfer over the coming 18 to 24 months, though some of that is in the form of subservicing contracts. “Over the next year the figure could be...

Mortgage originations last year increased by some $435 billion from 2011 and virtually all of that gain came from refinance activity. Unless housing activity begins to grow significantly faster, mortgage lending volume appears likely to drop significantly in 2013. Prodded along by the suddenly successful Home Affordable Refinance Program, refi lending increased by $403 billion last year, a 41.9 percent increase over 2011. And although a number of indicators suggested that housing sales were beginning to firm up, home-purchase mortgage originations were up just 6.3 percent – a gain of $32 billion – compared to the previous year. In fact, purchase-mortgage originations have been...[Includes three data charts]

New issuance of agency single-family MBS fell 3.1 percent from January to February, according to a new Inside MBS & ABS analysis and ranking. On a combined basis, Fannie Mae, Freddie Mac and Ginnie Mae issued $153.4 billion in new single-family MBS last month. That was up 31.6 percent from February 2012 and compared favorably with the $138.5 billion monthly average issuance for all of last year. All of the decline came...[Includes one data chart]

An investor in Alt A MBS originally issued by Residential Capital Corp. filed suit this week to block Nationstar Mortgage from auctioning nonperforming loans from the MBS pools. Nationstar in mid February began auctioning NPLs on auction.com, according to the complaint filed in the Supreme Court of New York State this week. There are currently two additional auctions totaling some $750 million of NPLs listed on the internet auction site, both believed to be related to Nationstar. The company is...