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]

The rating service said the expected loss benefit at the AAA level will likely be modest or immaterial for most transactions.

Prime non-agency MBS issuance in the second quarter of 2016 was down by 74.1 percent from the previous quarter.

A limited number of mortgages with TRID errors have already been included in jumbo MBS…

Upgrades of ratings on structured finance products hit an all-time high in 2015, according to a study released this week by S&P Global Ratings. The study tracked ratings across sectors and the world, while the U.S. residential MBS sector showed mixed performance. S&P said it had 30,359 ratings outstanding on global structured finance securities at the beginning of 2015. During the year, 9.8 percent of the ratings were upgraded. The rating service said upgrades in 2015 were most prevalent on structured credit deals in Europe and the U.S. Some 11.2 percent of S&P’s ratings were downgraded...

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 “Brexit” vote in the United Kingdom last week helped significantly reduce interest rates on new jumbo mortgages. Looking forward, it’s not clear if rates will remain low, which would boost refinance volume, or if banks will make further adjustments. The Brexit vote prompted investors to increase their holdings of 10-year Treasury notes, pushing down yields. Interest rates on mortgages tend to follow trends in the 10-year Treasury, though rates on jumbo mortgages can be ...

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 ...