Goldman Sachs last week announced it has agreed to a $5.1 billion settlement, the largest regulatory penalty in the firm’s history, concluding an investigation brought by the Residential MBS Working Group of the U.S. Financial Fraud Enforcement Task Force. The agreement in principle is poised to resolve actual and potential civil claims by the U.S. Department of Justice, the New York and Illinois attorneys general, the National Credit Union Administration (as conservator for several failed credit unions) and the Federal Home Loan Banks of Chicago and Seattle. At issue are...

According to a memo from Barclays CEO Tom King, “As a result, we will no longer offer residential loan trading, GNMA CMBS or CMO products.”

Impac is working to increase originations of non-QMs as part of an effort to mitigate against reduced refinance volumes.

“We’re seeing a lot of TRID flow right now,” said Rob Smialek, senior vice president of capital markets for Rincon Mortgage Trading.

Jumbo MBS issuers are not required to identify lenders that contribute less than 5.0 percent of the loans to any particular deal.

Prime jumbo MBS issuance rebounded from a soft 2014 with $12.08 billion in issuance, a 25.4 percent gain.

Goldman actually entered the subprime MBS and financing game a bit late compared to some of its peers. At one point it even owned a small subprime lender.

By now the word is out: Certain unnamed secondary market investors are turning away mortgages because of compliance errors, expressing the opinion they do not want to be on the “liability hook” for any origination errors under the new integrated disclosure rule known as TRID. The Mortgage Bankers Association recently singled out a jumbo investor that’s been rejecting 100 percent of the loans offered by originators. The trade group declined to identify the investor, but other ...

Compliance violations with a disclosure rule that the Consumer Financial Protection Bureau implemented in October continue to cause problems for non-agency mortgages in the secondary market. The CFPB and Fitch Ratings separately provided guidance recently regarding the so-called TRID integrated disclosure rule that could help industry participants get more comfortable with TRID. There have been reports that some buyers of non-agency mortgages have balked at ...

The non-agency mortgage-backed security market could be revived this year by economic factors rather than efforts by Congress or industry participants, according to analysts. The non-agency share of mortgage originations has been relatively strong in recent years, but the loans were largely held in bank portfolios instead of included in non-agency MBS. Legislative reform of the government-sponsored enterprises and potential incentives for non-agency MBS issuance look ...