Investors shying away from new jumbo MBS have expressed strong interest in the risk-sharing transactions offered by Fannie Mae and Freddie Mac. Demand for the transactions has been so high recently that some analysts are recommending that investors could see better returns from vintage non-agency MBS. Fannie Mae said about 75 investors initially bought into the $675 million in non-guaranteed bonds it offered, and Freddie Mac said about 50 investors initially bought into the $500 million in non-guaranteed bonds it offered. The deal has been very well received...
Lenders continue to originate non-agency jumbo mortgages, but few are likely to be securitized in the coming months due to more favorable economics for banks retaining the loans in portfolio. Longer term, many investors suggest they wont return to the non-agency mortgage-backed security market until issuers standardize their offerings. The ABS East conference sponsored by Information Management Network last week in Miami presented a tale of two markets: jumbo MBS and everything else ...
The jumbo mortgage-backed security market showed some signs of life this week as Shellpoint Partners offered its second deal of the year, a restructured and downsized version of the transaction targeted for late September. The $250.85 million deal is set to receive a triple-A rating with credit enhancement of 7.10 percent on the top-rated tranche, according to Kroll Bond Rating Agency. The $308.64 million deal Shellpoint was preparing in September was set to have credit enhancement of 7.90 percent ...
First Republic Bank was the top contributor to jumbo mortgage-backed securities through the first three quarters in 2013, according to a new ranking and analysis by Inside Nonconforming Markets. Meanwhile, underwriting trends for the sector were mixed. Some $2.10 billion in originations by First Republic were included in jumbo MBS this year, as of the end of September. The loans accounted for 17.2 percent of all non-agency jumbos securitized, more than double the next closest lender ... [Includes two data charts]
Opposition to lower loan limits for the government-sponsored enterprises appears to be increasing by the day as the Federal Housing Finance Agency considers the issue. Support from non-agency participants for a reduction at least in the high-cost loan limits has been proportional to the non-agency share of total mortgage originations: about one in 10. My sense is that there will never be a good time to reduce the conforming loan limit, said Mark Zandi, chief economist at Moodys Analytics ...
The strength of the non-agency jumbo market is a major factor in efforts to reduce the government-sponsored enterprises market share, according to a former advisor for the Obama administration. If the GSEs pull back too quickly, it will change the whole discussion, said Jim Parrott, owner of Falling Creek Advisors and a senior advisor at the National Economic Council until earlier this year. The political feedback will be very quick and ruthless. It would make GSE reform extremely difficult. ...
The biggest originator of jumbo mortgages is redeveloping a platform to issue non-agency mortgage-backed securities, according to Larry Rubenstein, managing counsel at Wells Fargo. However, dont expect jumbo MBS from Wells anytime soon as the bank has plenty of portfolio capacity. Wells hasnt issued a non-agency jumbo MBS since 2008, when it was the top issuer of such securities, according to the Inside Mortgage Finance MBS Database. Speaking at the ABS East conference sponsored by Information Management Network ...
Underwriting standards for jumbo mortgages decreased slightly in September compared with the previous month, according to a Mortgage Bankers Association analysis of data from AllRegs... Joseph Smith, the monitor for the $25 billion national servicing settlement with five banks, released a report this week detailing for the first time how the servicer loss mitigation actions have been credited. While the banks reported $38.72 billion in gross relief via loss mitigation and refinances through the end of 2012 ...
The Department of Housing and Urban Developments proposed qualified mortgage rule attaches certain conditions to QM treatment that may complicate matters for participating lenders, said attorneys with K&L Gates in Washington, DC. On Sept. 30, the Department of Housing and Urban Development published its own proposed QM rule for FHA loans. The CFPB rule takes effect on Jan. 14, 2014, and will apply to FHA loans until HUD issues a final rule. Under the CFPB rule, many FHA loans would not qualify for the rules safe harbor because the higher mortgage insurance premiums would make them higher priced mortgage loans. Thus, in order to ...
Two surviving spouses of deceased reverse mortgage borrowers won their case against the Department of Housing and Urban Development after a U.S. court found HUD in violation of federal law for failing to protect the spouses from foreclosure. The courts decision marks a turning point for surviving spouses, such as Robert Bennett of Annapolis, MD, and Leila Joseph of Brooklyn, NY, and ensures that they will be protected against eviction and foreclosure, despite the loss of their husband or wife, said Jean Constantine-Davis, a senior attorney with the AARP Foundation Litigation. In March 2011, the AARP and the law firm of Mehri & Skalet of Washington, DC, filed ...