Settlements regarding non-agency mortgage-backed securities are starting to increase as industry analysts suggest that the agreements limit the future liability faced by issuers. Bank of America and the Royal Bank of Scotland recently reached separate non-agency MBS settlements. At the end of October, BofA quietly settled with investors including the Public Employees Retirement System of Mississippi in 18 non-agency securities issued by Merrill Lynch. The settlement price was not disclosed but was reportedly $315.0 million. ...
Springleaf Finance continues to consider an initial public offering for its real estate investment trust as a way to refinance a portion of its business to pay off debts. The Springleaf REIT filed for an IPO in May and while investor demand has not been overwhelming, the company maintains that it is still considering going public. The REIT will be primarily engaged in the business of sourcing, screening and acquiring performing whole loans secured by mortgages on residential real estate, Springleaf Finance said ...
Officials with the Consumer Financial Protection Bureau once again stressed the need for regulation of alternative mortgages this week. However, the performance of such risky loans continues to be debated among consumer advocates and economists. In the lead up to the crisis, when a competitor began to steal market share or to earn outsize profits by introducing products like option ARMs or no-doc loans, the pressure to follow suit was intense, Raj Date, special advisor to the Treasury on the CFPB, said ...
A number of real estate investment trusts besides Redwood Trust are hoping to issue non-agency mortgage-backed securities in the coming years. PennyMac Mortgage Investment Trust and Two Harbors Investment have taken two significantly different strategies to reach that goal. PennyMac has focused on investing in non-performing whole loans and has established a correspondent lending platform, including some jumbo activity. The REIT is also establishing warehouse lending capabilities, with a roll-out planned by mid-2012. In the near-term...
Three more non-agency servicers agreed with New Yorks Department of Financial Services to revamp their servicing practices to address alleged improper servicing. American Home Mortgage Servicing, Saxon Mortgage and Vericrest Financial last week agreed to servicing practices previously agreed to by Goldman Sachs Bank, Litton Loan Servicing and Ocwen Financial. Among other provisions, the agreements require a single point of contact for borrowers and the end of dual-track foreclosures. The servicers also must withdraw any pending foreclosure in which affidavits were inaccurate and... (Includes one data chart)
Ratings by DBRS of new non-agency mortgage-backed securities will include analysis of several factors at the metropolitan statistical area level. The new rating methodology and loss model were released last week without substantive changes from the proposal the rating service issued in October. The experience of the last decade has made it apparent that it is not credible to consider loan performance without factoring in house prices and unemployment rates, DBRS said. ...
Wells Fargo was the top jumbo lender in 2010, according to a ranking by Inside Nonconforming Markets based on Home Mortgage Disclosure Act data compiled by ComplianceTech/Lending Patterns. Wells had $40.87 billion in originations greater than the $417,000 standard conforming loan limit in 2010. ... [Includes one data chart]
Ocwen Financials pending purchase of subprime servicer Saxon Mortgage is just the latest growth spurt for the firm. We are looking at other transactions as we speak, William Erbey, chairman of Ocwen, said last week on a call with investors. Even with the Saxon deal, Erbey said Ocwens pipeline of potential acquisitions increased in the third quarter of 2011 compared with the previous quarter, to more than $300.0 billion in unpaid principal balance. ...
We have to reduce uncertainty to bring private capital back, Shaun Donovan, secretary of the Department of Housing and Urban Development, said at the Mortgage Bankers Associations annual convention last week in Chicago. Industry participants remain divided on if or when non-agency securitization will resume in a significant manner. Daniel Arrigoni, president and CEO of U.S. Bank Home Mortgage, said U.S. Bank and other lenders must think about developing non-agency securitization capabilities as the federal government works toward reducing its involvement in housing finance. ...
The lower loan limits instituted this month for conforming mortgages opened a number of regional opportunities for non-agency lenders. As of Oct. 1, 250 counties have lower government-sponsored enterprise loan limits compared with the conforming loan limits of 2010, according to an analysis by affiliated publication Inside Mortgage Finance. Michael Fratantoni, vice president of single-family research and policy development at the Mortgage Bankers Association, said the portion of the market newly eligible only for non-agency financing is significant in comparison to the amount of non-agency jumbo originations in recent years. ... [includes one data chart]