A $1.5 trillion year is doable: according to survey figures compiled by Inside Mortgage Finance, residential funders originated $805 billion in the first half.
Investors at the ABS East conference sponsored by Information Management Network last week in Miami largely agreed that many MBS and ABS sectors are stronger than they were before the crisis in terms of issuance and certainly in terms of performance. While the investor base for securities has declined from the boom times of 10 years ago, there are also fewer distressed sellers. “You tend to see that bonds are held in strong hands, which makes for a strong underpinning,” said Alessandro Pagani, a portfolio manager and head of securitized assets at Loomis Sayles. “It makes for a pretty good balance between supply and demand.” John Vibert, a managing director at Prudential Fixed Income, said...
The delinquency rate for loans backing commercial MBS was fairly stable in August, according to reports from Fitch Ratings and Trepp. Although Fitch reports that loan delinquencies fell one notch to 4.52 percent from the previous month, Trepp data show that the overall CMBS delinquency rate inched upward to 5.45 percent in August, from 5.42 in July. Late payment balances fell...
The evidence is somewhat suspect because as the analysts noted, the 43 percent cap on DTI ratios for QMs doesn’t currently apply to the FHA, VA or GSE mortgages.
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