The European Central Bank’s launch of a Fed-like quantitative easing program will likely keep the yield spread flat and interest rates low. The ECB plans monthly purchases of €60 billion in ABS and covered bonds issued by central governments, agencies and banks in the euro zone. U.S. experts have been mulling...
Securitization of income-property mortgages continued to post strong new issuance numbers in 2014, with the non-agency commercial MBS sector doing particularly well, according to a new market analysis by Inside MBS & ABS. A total of $164.77 billion of securities backed by commercial mortgages were issued last year, down just 0.6 percent from 2013’s level, which was the high-water mark since just before the financial collapse. And non-agency CMBS production was up 11.6 percent in 2014, at $96.48 billion. Agency MBS issuance fell...[Includes one data chart]
Wells Fargo was the largest Fannie/Freddie servicer at yearend with $791.0 billion, followed by Chase Home Finance ($429.1 billion) and Bank of America ($260.4 billion).
On loans with LTVs ranging from 90 percent to 95 percent, for example, GSE pricing was better for all borrowers with credit scores over 620. But things are different now.
Not only have nonbank lenders steadily increased their production market share the past two years, but their loan officers, in general, earn more money on a per unit basis than their depository counterparts. At least that was the finding of several interviews conducted by Inside Mortgage Finance during January. “Banks are tiered 50 to 100 basis points [per loan] with qualifiers,” said Paul Hindman, managing director of business development for Grid Financial. “Nonbanks are tiered 75 to 175 basis points with qualifiers.” And LOs who work for net branch operators can earn...
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