Thanks to increasing market demand and two expansions of their scorecard caps courtesy of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac could do more than $100 billion in combined issuance of multifamily MBS by the end of 2016 – if they have a strong December, that is. According to Inside MBS & ABS figures, Fannie’s new multifamily MBS issuance in the first nine months of 2016 was up 18.4 percent from the same period last year. Josh Seiff, vice president of multifamily capital markets and trading at Fannie, was...
Republicans running the House Financial Services Committee had enough votes, in spite of one defection, to push through a legislative markup this week a comprehensive overhaul of the Dodd-Frank Act that would eliminate the pending risk-retention requirements for ABS other than residential mortgages, among other provisions. The GOP’s preferred legislative vehicle is H.R. 5983, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act, dropped in the legislative hopper a week ago by Rep. Jeb Hensarling, R-TX, committee chairman. “Many post mortems of the financial crisis posit...
In a somewhat uncommon occurrence, four law firms published a position paper late last week aimed at helping industry participants comply with pending risk-retention requirements for new commercial MBS. The paper was written by attorneys at Cadwalader, Wickersham & Taft; Dechert; Orrick, Herrington & Sutcliffe; and Sidley Austin. “The paper was authored...
Although delinquencies on commercial MBS rose for a fifth straight month during July, predictions of a bust have not developed and many analysts are starting to feel more comfortable with the sector, especially in regard to multifamily credits. According to figures compiled by Trepp, the overall delinquency rate on U.S. CMBS increased 16 basis points during the month to 4.76 percent. The percentage of loans considered seriously delinquent increased 19 bps to 4.67 percent. This compares...
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