Shellpoint Partners received approval last week for a $2 billion shelf registration from the Securities and Exchange Commission, paving the way for the company to issue non-agency mortgage-backed securities. Funding the shelf with substantial capacity shows our commitment to bringing urgently needed private capital back into the housing market, said Saul Sanders, co-CEO of ShellPoint. We intend to be a significant issuer of new issue residential MBS and help define the new market standards and ...
Although Redwood Trusts soup-to-nuts approach to representations and warranties has dominated the fledgling recovery in jumbo mortgage-backed securities issuance, some experts think a shorter term alternative may gain popularity among issuers. Its important for investors and rating services to anticipate putbacks in jumbo MBS, Peter Sack, a managing director at Credit Suisse, said during a panel session at the recent secondary market conference sponsored by the Mortgage Bankers Association ...
Issuers of non-agency mortgage-backed securities should disclose when they seek a rating from a firm and ultimately decide not to hire the firm, according to a variety of non-agency participants. If one rating is 7 percent subordination and the other is 15 percent, we dont need to accept the 15 percent subordination, but we do need to disclose the 15 percent subordination opinion to investors, Martin Hughes, CEO of Redwood Trust, said this week at a roundtable hosted by the Securities and Exchange Commission ...
Investors in subordinate tranches of recently issued non-agency jumbo mortgage-backed securities have seen strong returns on the investments. Real estate investment trusts have focused on the assets, which are likely to be subject to risk-retention requirements going forward. We like the loan assets and the ability to diversify our funding in this manner where we dont have a duration gap, there is no margin risk, and the assets and liabilities amortize and prepay at the same rate, eliminating the need for ...
Redwood Trust has recently put an increased emphasis on acquiring purchase mortgages. The loans have higher loan-to-value ratios than refinances included in Redwoods non-agency mortgage-backed security issuance, a potential concern according to Kroll Bond Rating Agency. Redwood said it acquired $955 million in purchase mortgages from its correspondent lenders in the first quarter of 2013, up from $550 million the previous quarter. The purchase-mortgage share of Redwoods acquisitions is also increasing ...
After years of holding onto investments in non-agency mortgage-backed securities even as prices declined significantly, the government-sponsored enterprises are preparing to sell some of their $101.5 billion in non-agency MBS holdings. Freddie Mac is offering $1.0 billion in non-agency MBS for sale with plans to unload as much as $5.0 billion this year, if pricing for the securities remains strong. A spokesman for the GSE said the sales are part of an effort to meet goals set by ... [Includes one data chart]
Activity in the non-agency jumbo market could play a big role in determining how to reform the government-sponsored enterprises, according to industry analysts. While policymakers consider what to do with Fannie Mae and Freddie Mac, some are calling for a larger role for the jumbo market as a test for GSE reform. Mark Willis, a resident research fellow at New York Universitys Furman Center for Real Estate and Urban Policy, said the Federal Housing Finance Agency should increase the GSEs guaranty fees for ...
Deephaven Mortgage, a new subprime lender headed by a former Goldman Sachs official, is seeking warehouse lines of credit, according to one banker. The banker, requesting anonymity, said his institution was approached by the North Carolina-based Deephaven in the past few weeks but decided to pass on the credit. The warehouse lender said he believes that, for now, the traditional warehouse community will not extend credit to subprime lenders, even if they have high downpayment requirements and [Incluides two briefs]
SunTrust Mortgage is in settlement discussions with the Department of Housing and Urban Development and the Department of Justice over alleged violation of the False Claims Act in connection with the banks origination of FHA loans. The Atlanta-based mortgage lender disclosed the ongoing talks in a recent regulatory filing after being notified by the agencies of the results of their preliminary investigation during the first quarter of 2013. Even with the ongoing settlement talks, SunTrust continued to deny any wrongdoing, making clear its disagreement with the governments analysis and methodology. It gave no further ...
Changes to the FHAs mortgage insurance premium cancellation policy, which take effect on June 3, could ultimately cause some FHA loans closed after the effective date to become a higher-priced mortgage loan that no investor would want to purchase, lenders warned. Eliminating the MIP cancellation and requiring insurance to be kept for the life of the mortgage loan will raise the annual percentage rate 150 basis points above the average prime offer rate (APOR) index. This will trigger a higher-priced mortgage loan (HPML) designation for some ...