Mortgage securitization rates in 2015 are still low compared to last year, but some of the decline is likely due to the lag between primary market origination and MBS issuance. For the first six months of the year, new MBS issuance represented 73.8 percent of total originations, according to a new Inside MBS & ABS analysis. That’s down from a 75.4 percent securitization rate for all of 2014. Securitization rates are...[Includes one data table]
Last week, Angel Oak Mortgage Solutions was slated to issue a roughly $150 million security backed by nonprime mortgages, an event that promised great things for both the company and the non-agency market. But then nothing happened, or so it appears. Two weeks after confirming to Inside MBS & ABS and another news organization that a new nonprime security was definitely ready to price, the company – and its underwriter, Nomura Securities – has suddenly stopped talking about the deal, both publicly and privately. One source who has held meetings with executives at both firms said...
PHH Mortgage – which handles originations for a number of financial firms on a private-label basis – was the largest IO lender in the nation with $7.19 billion funded during the first half.
Nearly a year has passed since the Structured Finance Industry Group released documents relating to the RMBS 3.0 project and the leader of the Treasury Department’s non-agency reform efforts left the Treasury in May. However, at the ABS East conference sponsored by Information Management Network this week in Miami, industry participants noted that progress is being made on both initiatives. Panel sessions on reforming the non-agency mortgage-backed securities markets have been a staple at industry conferences since 2008, and some observers question whether much progress has been made. “I think...
With a lack of consensus from industry participants, let alone members of Congress, regarding how to reform the government-sponsored enterprises, the risk-sharing transactions implemented by the GSEs in recent years are seen as one possible model for increasing private capital investment in the mortgage market. Stanford Kurland, chairman and CEO of PennyMac Financial Services, suggested that the predominant risk-sharing transactions used by Fannie Mae and Freddie Mac have significant limitations. In an opinion piece published last week in the American Banker, Kurland said front-end risk-sharing “should be a bridge to long-term reform.” The main risk-sharing efforts completed by the GSEs are...
The Common Securitization Platform currently under development for use by the government-sponsored enterprises has seen some twists and turns regarding potential use for non-agency mortgage-backed securities. Various officials working on the CSP stressed this week at the ABS East conference in Miami that the focus for the platform is activity by Fannie Mae and Freddie Mac. “The platform is adaptable, but our focus is on the enterprises,” said David Applegate, CEO of Common Securitization Solutions, the Fannie Mae/Freddie Mac joint venture that is developing the CSP. At the conference produced by Information Management Network, he noted...
Originations of interest-only mortgages increased at a number of lenders in the first half of 2015, according to a new ranking and analysis by Inside Nonconforming Markets. The federal qualified mortgage standard does not allow interest-only terms, and IO production declined after the Consumer Financial Protection Bureau QM rule went into effect. Lately, however, many lenders seem to be getting more comfortable with the product. A group of 15 lenders had...[Includes one data table]
Bank and thrift holdings of home-equity-related loans declined in the second quarter of 2015 compared with the previous quarter, according to a new ranking from the Inside Mortgage Finance Bank Mortgage Database. Among the top 10 banks and thrifts in HEL business, only two increased their holdings in that span, led by U.S. Bank. Banks and thrifts had $962.74 billion in holdings of home-equity lines of credit, HELOC commitments and closed-end second liens at the end of the second quarter of 2015, down 1.2 percent from the previous quarter. HEL lending is up sharply this year, but new originations haven’t been enough to outpace declines in home-equity portfolios at most banks. U.S. Bank had...[Includes one data table]
Select Portfolio Servicing is among the firms that demonstrate the highest standards in overall servicing ability, according to Fitch Ratings. The rating service released an assessment of Credit Suisse’s servicer last week, noting that SPS is a key component of Credit Suisse’s conduit operations. SPS handled an $86.04 billion portfolio as of the end of the second quarter of 2015, according to Fitch. The vast majority of the firm’s servicing involves non-agency mortgages, both vintage loans and newer mortgages included in jumbo mortgage-backed securities. Some 13.6 percent of SPS’s servicing volume at the end of June was classified as third-party servicing. The company has been servicing...
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