Issuance of agency and non-agency commercial MBS increased 13.5 percent in 2013, according to a new analysis by Inside MBS & ABS, although production dropped sharply in the fourth quarter. Industry participants expect that volume will continue to grow as investor demand for commercial MBS remains strong despite some loosening of underwriting standards. Ken Cheng, a managing director at Morningstar Credit Ratings, said...[Includes one data chart]
Industry participants expect that volume will continue to grow as investor demand for commercial MBS remains strong despite some loosening of underwriting standards.
A policy shift at the Securities and Exchange Commission requiring admission of guilt in certain cases may encourage wrongdoers in the securities market to litigate rather than settle, resulting in fewer SEC settlements, according to some compliance attorneys. Fear of possible criminal prosecution and the lasting impact of an admission of guilt could compel accused companies and individuals to take their cases to trial rather than negotiate a settlement, warned Philip Stein and Jeremy Sahn, partners in the Miami-based law firm of Bilzin Sumberg. Starting in June 2013, the SEC began requiring...
Losses incurred for rep-and-warrant claims tied to MBS could total $89 billion eventually. However, banks have already reserved $88 billion, according to some tallies.
The lawsuit seeks to recover unspecified damages and penalties from the defendants for using fraudulent mortgage assignments and FHA endorsements to submit tens of thousands of false FHA claims from 2000 through 2010.
Ocwen Financial announced late last week that its planned purchase of mortgage servicing rights on a $39.2 billion portfolio of mortgages from Wells Fargo is on “indefinite hold” due to a request and scrutiny by the New York Department of Financial Services. Industry participants suggest that delays in servicing transfers due to third parties are common and the deal with Ocwen, which largely consists of mortgages in non-agency MBS, will be completed. “Ocwen will continue to work closely with the NYDFS to resolve its concerns about Ocwen’s servicing portfolio growth,” the servicer said. The NYDFS raised concerns that Ocwen doesn’t have enough capacity to handle the significant portfolio growth experienced by the servicer in recent years. Certain nonbank servicers are getting...
For an industry that’s looking at a 30 percent decline in originations, we’re seeing a great deal of SEC 13-d filings by investment funds that are upping their stakes in such players as MGIC, Radian, Ocwen, Walter, EverBank and the like.
VA activity appeared to lose momentum in the fourth quarter of 2013 as approved lenders reported $129.9 billion in total originations for the year, according to Inside FHA Lending’s analysis of Department of Veterans Affairs data. Production has been gradually slipping since the end of the first quarter, when lenders posted an aggregate $37.5 billion in new VA loans. The fourth quarter ended with $22.4 billion in total originations, which was down a hefty 32.1 percent from the previous quarter. On a year-over-year basis, however, VA originations were up by 1.5 percent. Refinancing accounted for 9.9 percent of VA production in 2013, up slightly from ... [1 chart]
The FHFA will show the MI standards to state insurance regulators first, but only if they agree to sign a “non-disclosure” agreement with the FHFA or the government-sponsored enterprises regarding the content they see.
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