Issuance of non-agency MBS with deals backed by mortgages bought out from Ginnie Mae MBS has increased in recent months. Once they’re reperforming, those loans can be re-delivered to Ginnie.

The Federal Housing Finance Agency plans to implement tiered financial requirements for nonbank servicers and set harsher treatment for Ginnie servicing than what’s currently required for GSE seller/servicers.

Loan payoffs through refinancing and the like declined during the fourth quarter while buyouts plummeted. On an annual basis, loan removals were largely flat. (Includes data chart.)

The new documentation process eliminates the need for recordation and title insurance, with certain exceptions, for servicers participating in FHA’s COVID-19-related advanced loan-modification program.

A Florida-based investor is touting the profits available from commercial MBS with distressed malls. The trade runs counter to the “mall shorts” that helped generate massive returns for some investors last year.

Ocwen, which had plans to ramp up its clean-up calls of non-agency MBS, put the activity on hold following a pricing issue with Deutsche Bank, a trustee for the MBS.

Overall, delinquency rates for commercial MBS have improved each month since a peak in June 2020. However, loans tied to office and hotels with an emphasis on corporate travel are slower to recover.

The American Bankers Association called for a measured approach to the implementation of any capital requirements for single-family MBS issuers.

Auctions of early buyouts from Ginnie MBS continues apace. One way to enter the market: Buy the mortgage servicing rights instead.

Nonbanks, risky or not for the MBS market? Ginnie Mae’s new capital proposal may finally settle the question. If it becomes final...