With a strong fourth quarter, jumbo MBS issuance in 2015 could nudge past the post-crisis high set back in 2013, when $13.12 billion of these deals came to market.
A new loan origination defects and remedies framework to reduce buybacks was released by the government-sponsored enterprises last week, and lenders who spoke with Inside MBS & ABS said it may not be groundbreaking, but it is a step in the right direction. Jeremy Potter, general counsel and chief compliance officer with Norcom Mortgage, said, “We were really happy with the outcome. It seems like the industry has been working with them and this is a good team effort.” He said...
Access to advances from the Federal Home Loan Banks have helped Redwood Trust operate its jumbo conduit, including adding to portfolio capabilities, according to officials at the real estate investment trust. Like other REITs, Redwood gained access to FHLBank advances via a captive insurance subsidiary. RWT Financial was approved as a member of the FHLBank of Chicago in the second quarter of 2014. In July, the FHLBank advance financing capacity for Redwood’s subsidiary increased by $400 million to $1.4 billion. “We’ve been able to more efficiently finance
With action from Congress to reform the government-sponsored enterprises not expected in the next year and a half, the GSEs’ risk-sharing activities have been seen by some as a de facto housing finance reform program. Industry participants and members of Congress suggest that the risk-sharing initiatives aren’t a replacement for GSE reform, even while calling for adjustments to the programs. Kevin Chavers, a managing director at BlackRock, said the back-end ...
Nonbanks comprised a significant portion of Ginnie Mae business as independent mortgage companies replaced banks as primary securitizers of FHA and VA loans. In the third quarter of 2015, mortgage companies accounted for 60.8 percent of VA loans and 67.1 percent of FHA loans securitized in Ginnie pools. For mortgage companies, production of Ginnie mortgage-backed securities backed by FHA loans increased by 5.0 percent in the third quarter from the previous quarter and was up a whopping 118.1 percent during the first nine months of 2015 over the same period last year. Nonbank securitization of VA loans rose by a modest 1.5 percent quarter over quarter and by 83.6 percent over the nine-month period compared to the same period last year. Megabanks, whose assets exceed $1 trillion, were the second largest issuers of Ginnie Mae MBS, accounting for less than ... [3 charts]
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