The stock market hasn’t been treating real estate investment trusts that buy MBS very well of late, but there could be better news on the horizon: prepayment rates on the securities they own are coming down. As Barclays noted in a recent report: “Prepays fell for most cohorts, led by recent vintage 3.5s and 4s.” The investment banking firm added: “Next month, we expect speeds to remain mostly stable as seasonal factors and a 12 basis point rally in driving rates (3.83 percent vs 3.95 percent) helps offset another one-day drop in day count (20 days vs 21 days).” Several mREITs tracked...
Despite the Federal Housing Finance Agency’s misgivings about Property Assessed Clean Energy programs, ABS issuers are finding investors for deals backed by these loans. Since March 2014, three rated residential ABS transactions and one private unrated commercial deal backed by PACE assessments have been issued for a combined total of $503.65 million. All three residential ABS deals were rated “AA,” with average assessments totaling $59,628. The PACE program was launched in 2008 by the city of Berkeley, CA, as a pilot to promote energy efficiency in residential, commercial, agricultural and industrial properties...
For mortgage originators, going through a Consumer Financial Protection Bureau mortgage examination can be a daunting experience, but not if you walk in thoroughly prepared, according to compliance experts at GrantThornton. A CFPB lending exam can take up to six months to complete, can be quite expensive over time as well as delay business. At most banks and mortgage firms, the staff could work full time on just the CFPB audit, which could result in high overtime costs and ...
New life-of-loan representation and warranty- exclusion guidelines issued by the GSEs in November, appeared to have little impact on banks’ lending policies so far, according to a recent Federal Reserve Board survey.The rep-and-warrant changes were intended to reduce uncertainty and increase transparency in addressing lenders’ concerns about when they might be asked to repurchase a loan. The concerns were based on repurchase risk and other market factors that can cause an increase in credit overlays. “Addressing these concerns by providing tighter definitions and clarity should encourage sellers to serve a broader range of qualified borrowers,” said Dave Lowman, Freddie’s executive vice president of single -family business, when the changes were announced in November.
In efforts to encourage and promote diversity, the Federal Home Loan Banks and the Office of Finance were directed to include demographic data pertaining to their boards of directors in its annual minority and women inclusion reports submitted to the Federal Housing Finance Authority. “FHFA’s minority and women inclusion regulations reflect the importance the agency places on diversity and inclusion,” said Sharron Levine, associate director at FHFA’s Office of Minority & Women Inclusion. “The amendments to the regulation focus attention on the Federal Home Loan Banks’ responsibility to promote diversity in nominating or soliciting nominees for positions on their respective boards of directors.” The banks and Office of Finance must now be more specific and include descriptions of their outreach activities and....
The overall size of the single-family mortgage servicing market isn’t changing much, but the dynamics of the business continued to shift in early 2015, according to a new Inside Mortgage Finance analysis and ranking. The Federal Reserve won’t provide an official reading on single-family mortgage debt outstanding as of the end of the first quarter for another month or so, but the data point to little or no growth in the market during early 2015. Mortgage originations were...[Includes two data charts]
Thanks to the recent uptick in interest rates, the value of mortgage servicing rights is on the rise again, which should pave the way for a busy spring and early summer for investment bankers who play in the space. “Prices are holding up pretty well,” said Mark Garland, president of MountainView Servicing Group, Denver. “Prepayment speeds increased in March, but April speeds have come down a bit.” According to Garland, buyers of receivables are paying...
RSS