Presidential candidate Elizabeth Warren has flagged concerns about the issuer-pays model used by credit rating agencies for securitized products. She said the SEC hasn’t done enough to address the conflicts of interest tied to the model.
Some investors prefer buying non-agency mortgages via whole loan transactions rather than stocked in MBS. Whole loans offer better yields and more loan information.
In recent years, mortgages funded by Quicken have been included in prime non-agency MBS issued by others, but this is the first deal backed solely by loans originated by Quicken and serviced by the firm.
Veteran stock analyst Richard Bove wonders about the accounting treatment on an increase in the “liquidation preference” that Treasury will receive from the two GSEs...
Mortgages eligible for sale to the GSEs accounted for about 25% of the dollar volume of loans in prime non-agency MBS from Redwood earlier this year while the new deal includes a 10% share of GSE-eligible loans.
First Republic, JPMorgan Chase and CitiMortgage led the IO pack during the second quarter. Interest-only originations tend to be concentrated in the jumbo space...
There’s no consensus among industry participants on how the CFPB should address the “patch” for qualified mortgages. However, lenders generally agree that Appendix Q of the ATR rule needs a major overhaul.