The concerns among participants in the jumbo MBS market regarding the TILA-RESPA Integrated Disclosure rule might have been much ado about nothing. A new report from Moody’s Investors Service suggests that TRID violations won’t materially increase losses in jumbo MBS. The rating service said third-party due diligence reviews will identify loans in violation of TRID, and lenders and aggregators will be able to cure many TRID violations before the mortgages are placed in jumbo MBS. Three jumbo MBS have included...

Fannie Mae and Freddie Mac saw significant increases in the flow of both refinance loans and purchase-money mortgages during the second quarter of 2016, according to a new ranking and analysis by Inside Mortgage Finance. And for the first time in a long while, nonbank mortgage companies delivered over half of the single-family mortgages securitized by the two government-sponsored enterprises. Fannie and Freddie securitized...[Includes three data tables]

New issuance of U.S. residential MBS and non-mortgage ABS revved up significantly in the second quarter, a new Inside MBS & ABS analysis reveals. Based on the best available data, a total of $400.72 billion of new MBS and ABS were issued during the three-month period that ended June 30. That figure could edge slightly higher as more information about end-of-month activity becomes available. Second-quarter MBS and ABS issuance was...[Includes one data table]

Fitch Ratings published updated criteria this week for rating residential MBS. The new criteria include adjustments to due diligence grades relating to the Truth in Lending Act/Real Estate Settlement Procedures Act disclosure rule and evaluations of firms serving as a deal agent. Fitch said the new criteria include a “realignment” of items that prompt C grades and D grades on mortgages reviewed by third-party due diligence firms. The changes incorporate the Structured Finance Industry Group’s recently issued RMBS 3.0 TRID Compliance Review. The rating service acknowledged...

The issuance of prime non-agency mortgage-backed securities in 2016 is well below the relatively meager levels seen in recent years, according to a new ranking and analysis by Inside Nonconforming Markets. Some industry participants have blamed the lack of activity on the Truth in Lending Act/Real Estate Settlement Procedures Act disclosure rule that took effect in October. Although there are signs the market has adjusted to TRID, only two ... [Includes one data chart]

The nonprime mortgage-backed security issued last week by Lone Star Funds could spur an increase in MBS backed by non-qualified mortgages, industry analysts say. The $161.71 million COLT 2016-1 Mortgage Loan Trust was the first MBS backed by non-QMs to receive a rating. Some 51.8 percent of the mortgages in the deal were non-QMs. All of the mortgages were originated by Lone Star’s Caliber Home Loans. The A-1 tranche of the MBS priced at spread of ...

New criteria from Fitch Ratings for rating non-agency mortgage-backed securities include provisions regarding due diligence grades and the deal agent position planned by some issuers. The criteria published this week include a “realignment” of items that result in C grades and D grades on mortgages reviewed by third-party due diligence firms. The changes include reviews for compliance with the Truth in Lending Act/Real Estate Settlement Procedures Act ...

The $1.89 billion non-agency mortgage-backed security issued by JPMorgan Chase Bank in April looked promising for boosters of the non-agency MBS market. However, analysts at one of the firms that rated the deal suggest that a number of factors could limit other banks from following Chase’s lead. “Some banks are likely hesitant to securitize loan portfolios because securitizations could reduce return on equity at a time when banks are already struggling to meet ...

Bank and thrift holdings of non-agency mortgage-backed securities continue to decline on aggregate, mirroring the gradual drop in the amount of outstanding non-agency MBS. Banks and thrifts held $78.66 billion of non-agency MBS as of the end of the first quarter of 2016, according to a new ranking from the Inside Mortgage Finance Bank Mortgage Database. The holdings declined by 5.0 percent from the previous quarter and by ... [Includes one data chart]

Standard & Poor’s lost a little market share in the business of rating non-mortgage ABS during the first quarter of 2016, but the firm still was the most active player in the market, according to a new ranking by Inside MBS & ABS. S&P rated 58.4 percent of the $41.42 billion of non-mortgage ABS issued in early 2016, down from its 61.5 percent share for all of last year and its 64.1 percent share back in 2014. The company’s strong suit was in vehicle-finance ABS, where it rated 64.7 percent of the market, by dollar volume. While S&P’s share was up slightly in a few categories, its stake in the credit card ABS segment fell...[Includes two data tables]