Fannie Mae and Freddie Mac saw a marked decline in refinance business during the second quarter of 2013, but a strengthening housing market helped offset some of the lost volume. The two government-sponsored enterprises securitized $256.0 billion of single-family refinance loans during the second quarter, according to the Inside Mortgage Finance GSE Seller Profile, a quarterly statistical report based on loan-level, mortgage-backed securities disclosures. That was down 13.6 percent from ... [Includes two data charts]
A sharp downturn in refinance activity reduced Fannie Maes and Freddie Macs business volume during the second quarter of 2013, but the GSEs posted their strongest quarter in purchase-mortgage activity in four years, according to a new Inside The GSEs analysis. Fannie and Freddie issued $337.74 billion in single-family mortgage-backed securities during the second quarter, a 5.1 percent decline from the first three months of the year. The decline put an end to an upward trend in GSE production that took hold during the third quarter of 2012. Despite this, Fannie and Freddie business was up 20.0 percent over the first six months of last year.
Shellpoint Partners issued its first non-agency jumbo mortgage-backed security this week, which differs in a number of ways from non-agency MBS issued since 2010. The deal is an attempt to loosen slightly non-agency MBS underwriting standards, although the rating services were critical of the originator, New Penn Financial. Shellpoint Asset Funding Trust 2013-1 was initially planned as a $261.58 million non-agency MBS, according to presale reports issued last week. The deal was reportedly restructured ...
The preferences of investors and the rating services play a significant role in the characteristics of mortgages included in non-agency jumbo mortgage-backed securities, according to industry participants. The rating agencies are a first part of the analysis, but investors in these bonds are paying very careful attention to these loan characteristics, to credit exceptions and to who the lenders are, Peter Sack, a managing director at Credit Suisse, said this week at a webinar ...
Private MBS investors will likely see reduced competition from the Federal Reserve later this year if the central bank begins to slow down its purchases of agency MBS, but there is also likely to be a sharp drop in new MBS supply at the same time. The Federal Open Market Committee made no changes in its policy of adding $40 billion a month to its massive $1.165 trillion portfolio of agency MBS, in addition to reinvesting payments from its agency debt and MBS holdings. It also promised to closely monitor economic and financial developments and stands prepared to increase or decrease its MBS purchases. But Fed Chairman Ben Bernanke later indicated...[Includes two data charts]
The new non-agency jumbo mortgage-backed security from JPMorgan Chase has been described as both encouraging and puzzling by non-agency participants. The $442.54 million non-agency MBS shows that Chase thinks the non-agency securities market largely the domain of nonbanks since 2010 is strong enough for the bank to issue its second jumbo security this year. Non-agency MBS participants have welcomed the competition, noting that activity from a big bank such as Chase could prompt greater ...
Wall Street raised no objections to a Ginnie Mae proposal to consolidate its two mortgage-backed securities programs, indicating the move would be good for securitization and result in other positives. However, there appeared to be no consensus among players on how to get there. Representatives of Ginnie Mae and the Securities Industry and Financial Markets Association met early this month to discuss the agencys proposal. Analysts agreed it is far too early in the game to discern a clear path towards a single Ginnie Mae MBS program and that implementation is likely years away. Nevertheless, there were ...
Freddie Mac this week issued $1.04 billion of mortgage-backed securities backed by modified loans.The notes are being pooled into new Freddie Mac Fixed-Rate Modified Participation Certificates with new "MA-MD" prefixes. The GSE bought the majority of these loans out of participation certificates when they were at least 120 days past due. A Freddie official said that it will not sell the new bonds in the open market and instead will hold them on balance sheet.
Although Redwood Trusts soup-to-nuts approach to representations and warranties has dominated the fledgling recovery in jumbo mortgage-backed securities issuance, some experts think a shorter term alternative may gain popularity among issuers. Its important for investors and rating services to anticipate putbacks in jumbo MBS, Peter Sack, a managing director at Credit Suisse, said during a panel session at the recent secondary market conference sponsored by the Mortgage Bankers Association ...
Redwood Trust has recently put an increased emphasis on acquiring purchase mortgages. The loans have higher loan-to-value ratios than refinances included in Redwoods non-agency mortgage-backed security issuance, a potential concern according to Kroll Bond Rating Agency. Redwood said it acquired $955 million in purchase mortgages from its correspondent lenders in the first quarter of 2013, up from $550 million the previous quarter. The purchase-mortgage share of Redwoods acquisitions is also increasing ...