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]
GSE high-LTV mortgage programs gained traction during 3Q with the two securitizing $2.23 billion of insured purchase loans with LTV ratios of 96 or 97 percent...
Given the fairly wide range in origination volume trends among the group, it’s difficult to forecast how the overall market fared based on just their activity.
Fannie Mae and Freddie Mac securitized $59.07 billion of single-family loans with private mortgage insurance coverage during the third quarter of 2015, reflecting the increase in purchase-mortgage production, according to a new analysis and ranking by Inside Mortgage Finance. The flow of PMI-insured loans to the government-sponsored enterprises’ mortgage-backed securities program was up 12.3 percent from the second quarter, and it was likely the biggest such volume since the housing market collapsed in 2008. The data come from loan-level MBS disclosures, which Fannie started providing in 2013. The increased volume of privately-insured mortgages came...[Includes two data tables]
In the past year and a half, banks have started holding an increasing share of conventional conforming mortgages in portfolio instead of securitizing them through the government-sponsored enterprises. Industry analysts suggest GSE guaranty fees are the reason. In the first half of 2015, 91.6 percent of the estimated $442 billion in originations of conventional conforming mortgages were included in mortgage-backed securities. In 2013, 97.0 percent of the estimated $1.17 trillion in conventional conforming originations were securitized, according to an Inside Mortgage Finance analysis. “Securitizing conforming mortgages in agency MBS has become...
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