Two Harbors Investment is set to issue its first non-agency jumbo mortgage-backed security. The real estate investment trust is working on building its jumbo conduit operations, but in the meantime, Two Harbors plans to securitize mortgages it purchased from Bank of America. Two Harbors’ $434.17 million Agate Bay Mortgage Trust 2013-1 is set to receive AAA ratings with credit enhancement of 7.70 percent for the top-rated tranche. Mortgages to be included in the security have seasoned for ...
Fitch Ratings updated its loss model criteria for non-agency jumbo mortgage-backed securities this month, including new default estimates that vary by origination channel. Other rating services take the origination channel into account when rating new jumbo MBS, but not necessarily to the extent that Fitch has taken. “Fitch has determined that loans originated through a direct retail channel have a lower default risk than those originated through a broker, correspondent or wholesale channel,” the rating ...
Recent supervisory efforts by the Consumer Financial Protection Bureau have focused on “sloppy” servicing transfers and other loss mitigation issues. In a “supervisory highlights” review published this week, the CFPB said that between November 2012 and June 2013, it discovered several issues with servicing transfers that can cause borrowers to miss payments, delay important processes or affect the good standing of a borrower’s mortgage. The CFPB said its examiners found noncompliance with ...
With credit standards loosening somewhat, some commercial banks are listening to pitches from “private-money” lenders that are searching for warehouse lines, but so far it’s been a case of more smoke than fire. During the subprime meltdown of 2007, banks and Wall Street firms exited the nonprime warehouse sector and have yet to return. According to warehouse consultant Michele Perrin, several banks are willing to make warehouse lines on private-money mortgages, but only up to $5 million per deal ...
From the start of the Home Affordable Modification Program through the end of 2012, mortgages serviced for the government-sponsored enterprises accounted for the largest share of HAMP Activity. However, beginning this year, mortgages in non-agency mortgage-backed securities and loans in portfolio have overtaken GSE mortgages in terms of total HAMP activity. As of the end of the second quarter of 2013, non-agency mortgages accounted for 51.2 percent of the 1.21 million ... [Includes one data chart]
Servicers last week rejected offers from Richmond, CA to purchase 624 mortgages located in the city. Richmond now plans to seize the mortgages via eminent domain but has yet to make the move and faces significant opposition from mortgage industry participants. The five servicers participating in the $25 billion national servicing settlement have provided borrowers with $51.33 billion in gross relief through the end of the second quarter of 2013, according to the settlement’s monitor ... [Includes five briefs]
It was the biggest volume of new lending above the conforming loan limit since the second quarter of 2007 – before “emergency” conforming loan limits were authorized by Congress.
S&P has been the top non-agency MBS rating agency over the years but DBRS captured the title in 2012 with 55 percent of rated transactions, according to Inside MBS & ABS.
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