Over the past week, two nonprime MBS deals came to light: a $138.89 million bond issued by Deephaven Residential Mortgage Trust and a $119.38 million security from Angel Oak Real Estate Investment Trust. Both deals were private placements backed by newly originated mortgages and underwritten by Wall Street veterans Credit Suisse and Nomura Securities. Although both were publicized this week, the transactions – which were not rated – closed...
In a somewhat uncommon occurrence, four law firms published a position paper late last week aimed at helping industry participants comply with pending risk-retention requirements for new commercial MBS. The paper was written by attorneys at Cadwalader, Wickersham & Taft; Dechert; Orrick, Herrington & Sutcliffe; and Sidley Austin. “The paper was authored...
Manufactured housing advocates are pushing for more government-sponsored enterprise support for manufactured lending, especially for chattel loans that are not considered mortgages because the loan is not secured by a dwelling and land. The issue has gathered steam as the Federal Housing Finance Agency works to finalize a “duty-to-serve” regulation for Fannie Mae and Freddie Mac that focuses on mortgage financing for very low-, low- and moderate-income families in rural areas and manufactured housing. Back in May, the Manufactured Housing Institute and representatives from both GSEs had discussed...
Moody’s Investors Service has asked the U.S. District Court for the Southern District of New York to dismiss the remaining claim in a lawsuit alleging manipulation of credit ratings leading up to the financial crisis. In its motion to dismiss, Moody’s said that plaintiff Ilya Eric Kolchinksy’s second amended complaint fails to show that the rating agency used its electronic “ratings delivery service” to issue false ratings on MBS that later turned bad. In 2012, Kolchinsky, a former managing director at Moody’s, filed...
The new nonprime mortgage-backed securities from Angel Oak Capital Advisors and Deephaven Mortgage included a number of mortgages with compliance issues relating to the TILA-RESPA Integrated Disclosure rule, according to offering documents obtained by Inside Nonconforming Markets. Part of the compliance issues stem from the ongoing uncertainty regarding cures for minor errors. While the Consumer Financial Protection Bureau issued a proposed rule ...
A final rule issued by the Consumer Financial Protection Bureau regarding loss mitigation and other servicing practices will be positive for the servicing of non-agency mortgages, according to Moody’s Investors Service. The rating service said the rule will help standardize and improve servicing practices by increasing automation and clarifying ambiguities in the interpretation of regulatory requirements. Most of the provisions in the new rule will take effect in a year ...
The Mortgage Bankers Association strongly urged the Department of Housing and Urban Development and the FHA to issue authoritative guidelines for lenders participating in state and local housing finance programs that rely on premium pricing to fund downpayment assistance. In a recent letter to members, the MBA recommended that FHA lenders “tread carefully” and seek legal advice until HUD provides more definitive guidance on downpayment assistance and premium pricing. Lenders should consider carefully whether and when to participate in DPA programs from housing finance agencies that rely on premium-pricing mechanisms, the letter said. The MBA said it would continue to press HUD for clarification on this contentious issue. The FHA and HUD’s inspector general are currently at odds over permissible sources of single-family downpayment assistance offered through housing finance agencies. Although the ...
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