The first three months of 2014 represented the strongest quarterly ABS issuance number since the third quarter of 2009, when $53.27 billion of new deals were issued. It was up a modest 1.7 percent from the strong start in 2013.
Bad news for Nationstar and Ocwen? S&P said downgrades on servicer-advance ABS are possible because the analysis that accompanied ratings on certain deals didn’t consider subordinated interest amounts as part of the ratable promise.
But Wells also offers up disappointing news on its mortgage gain-on-sale results. Its GOS fell to 161 basis points in the first quarter compared to 177 bps in 4Q and 256 bps in 1Q13.
The EXPIRE Act also includes a provision to extend the mortgage insurance premium tax deduction. In a letter supporting the tax extensions to the committee, the Mortgage Bankers Association estimated that for a $200,000 home, homeowners would be able to deduct between $600 and $1,000 from their taxes.
FHFA Director Mel Watt may have something to say soon on the topic of Fannie Mae/Freddie Mac loan level price adjustments, commonly known as LLPAs. As for the GSE 'Scorecard'...
The biggest decline in MI-insured business was in underwater mortgages that were refinanced while keeping their existing coverage under the Home Affordable Refinance Program.
Currently, MSRs can only account for 10 percent of Tier I capital, but MBA thinks it should be raised to at least 25 percent for banks, and 50 percent for thrifts and savings and loans.
Roughly 2 percent of depositories said they will cease offering mortgages altogether because of the Consumer Financial Protection Bureau’s ability to repay rule and QM standards.
FHA chief Carol Galante reminded lenders that mortgage premium increases – five hikes from 2008 to 2013 – were necessary to protect the Mutual Mortgage Insurance Fund and properly price for the risk the government insurer was taking on.
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