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Inside MBS & ABS

December 4, 2009

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MBS Issuance Continued to Decline in November Despite Low Primary-Market Mortgage Rates

Mortgage securitization activity fell for the sixth consecutive month in November, totaling just $103.49 billion in total residential MBS issuance, according to a new Inside MBS & ABS ranking and analysis. November’s volume – which may be revised slightly higher when the agencies report their totals over the next few weeks – was down 4.6 percent... [Includes one chart and one graph] Read More

Fannie Gets Back in the Wrap Party with $375 Million Deal Backed by Recycled FHA Loans

The agency wrap business, which had been a major stratagem used by Fannie Mae and Freddie Mac to get into the subprime and Alt A MBS market, has fallen on lean times since those markets collapsed in 2007. Bank of America used a Freddie MBS guaranty earlier this year to convert $4.71 billion of seasoned prime loans into securitized form, although the transaction was retained on the bank’s portfolio... Read More

HAMP Mods Opening the Door for More Buyouts From MBS, More to Come with Conversion Initiative

It’s been nine months since the Obama administration launched its Home Affordable Modification Program, and recent reports note that mod-related buyouts are beginning to show up in government-sponsored enterprise MBS pools. Prepayments are also expected to rise as more HAMP trials are converted into full-fledged modifications. A recent report from Barclays Capital pointed... Read More

Industry Groups Have Mixed Reaction as Systemic Risk, Reform Bill Passes Out of House Committee

Groups representing various sectors of the mortgage finance industry are finding things to love and hate in the systemic risk legislation that passed the House Financial Services Committee this week, H.R. 3996, the Financial Stability Improvement Act. The favorable vote by this key panel paves the way for consideration by the full House of Representatives sometime next week... Read More

Rising Option ARM Defaults Could Threaten Market Recovery, New S&P Study Concludes

Though only a small portion of adjustable-rate mortgages with payment options originated during the recent housing boom have recast, concern is growing that further resets could quickly stifle the market that otherwise appeared to be on the mend, according to a new report by Standard & Poor’s. In the report, “Why We Expect Defaults for Option ARM Loans to Rise,” S&P credit analysts... Read More

After Wreaking Havoc With FHLBank Earnings, Non-Agency MBS Holdings Down 9 Percent

Like most other investors, the 12 Federal Home Loan Banks are letting their toxic non-agency MBS holdings gradually seep away from their balance sheets rather than try to sell the assets at fire sale prices. The FHLBanks still held $51.3 billion of non-agency MBS at the end of the third quarter, down 9.3 percent from the previous period and off 29.8 percent from... [Includes one chart] Read More

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