Banks, thrifts and credit unions increased their agency mortgage-backed security issuance by 0.9 percent from the second to the third quarter, while nonbank issuance was down 1.3 percent.
The guidance doesn’t “tells us anything more than where we were an hour before this guidance came out," according to Michael Barone, a director of legal and regulatory compliance at Lenders Compliance Group.
Over the past two years, roughly $13 billion in securities backed by single-family rental properties have come to market, a good start for a business that barely existed five years ago. But despite that growth, there are concerns that the “easy money” could be behind the sector. Some of that concern stems from the flood of entrants into the single-family rental market – a boom that turned red hot in 2012 and 2013 when it was first revealed that institutional investors such as The Blackstone Group and others were buying thousands of properties in once decimated housing markets with an eye toward renting them out. When investors began issuing securities backed by the rent rolls, even more money began pouring...
“Greater up-front harmonization of the GSEs’ policies and procedures is not only necessary, but fundamental to the success of the single-security initiative,” according to the Structured Finance Industry Group.
“The issues that have impeded the regulators’ ability to conduct electronic examinations must be rectified, and when resolved, will enable a more efficient and timely regulatory process,” said Karyn Tierney, chair of the MMC.
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