Moody’s Investors Service has flagged risks related to non-agency players using the automated underwriting tools developed by the government-sponsored enterprises to produce loans underlying private-label mortgage-backed securities.
The representations and warranties provided on new non-agency mortgage-backed securities are receiving renewed attention from industry participants. Issuers of prime jumbo and expanded-credit MBS, particularly, have been subject to criticism.
The amount of jumbo mortgage servicing handled by the top servicers increased at a much faster rate in 2018 than the total amount of outstanding residential mortgages, according to a new ranking and analysis by Inside Nonconforming Markets. [Includes one data chart]
Lower GSE loan limit not a priority for SFIG; whole loans present alternative to non-agency MBS for investors; jumbo MBS issuance may wane with home price appreciation...
Banks originating non-agency mortgages could better compete with the government-sponsored enterprises if the threshold for appraisal exemptions in case of residential real estate properties is raised, industry participants said.
Records are falling like dominoes in the nonprime mortgage-backed security market. Verus Mortgage Capital last week issued a $664.09 million deal — breaking a volume record set by Angel Oak Companies a month ago.
Prepayment rates on mortgage-backed securities with non-qualified mortgages have slowed due to interest rate trends and a shift in borrower characteristics, according to industry analysts.
The Structured Finance Industry Group’s years-long effort to reform practices in the non-agency mortgage-backed security market is nearly complete. However, it’s not clear whether the practices will be widely adopted by MBS issuers.
RSS