Cart

Inside Nonconforming Markets

April 30, 2010

View Archived Issues

Non-Agency MBS Backed by New Production Breaks 2-Year Drought

A jumbo mortgage-backed security issued this week is the first non-agency MBS backed by recently originated mortgages issued in the past two years. The deal could jumpstart jumbo securitization and serve as a model for future nonconforming MBS. Sequoia Mortgage Trust 2010-H1 was issued by Redwood Trust. The issuance is backed by $237.8 million... [Includes one chart and one graph] Read More

Senate Begins Consideration of Financial Reform

After three votes this week opposed moving to a debate on financial reform, the Senate started considering the first of potentially hundreds of amendments to the legislation. Democrats predict that the final vote on the legislation could occur in mid-May. Republicans had hoped to win concessions from Democrats in negotiations before the Senate started... Read More

Goldman Sachs Defends Subprime Actions

Facing significant charges from the Securities and Exchange Commission and an investigation by a Senate subcommittee – each related to subprime mortgages – representatives for Goldman Sachs defended the investment bank this week. A major theme of the charges is that Goldman made bets against the subprime mortgage market via “short positions” while helping investors purchase... Read More

Index Created to Track, Hedge Jumbo MBS Pricing

An index to gauge prime non-agency mortgage-backed security pricing and hedge against such collateral launched this week. Similar to the subprime-tracking ABX index, the PrimeX is designed to hedge against jumbo MBS principal writedowns and interest rate shortfalls. The PrimeX is administered by Markit, a financial information services company, which also administers... Read More

PPIP Funds Post Profits, Prefer Non-Agency MBS

The nine funds participating in the legacy securities Public-Private Investment Program have profited from their investments, predominantly via purchases of non-agency mortgage-backed securities.As of the end of the first quarter of 2010, the Public-Private Investment Funds have drawn down approximately $10.5 billion of total capital which has been... Read More

A Second Shot at Equity Sharing Mods and Loans

Borrowers facing negative equity and servicers unwilling to forgive principal could find solutions in a new equity sharing loan modification. The companies pushing the product are confident that the equity sharing mod will fare better than the paltry volume completed via the original HOPE for Homeowners program. EquityRock, a real estate equity sharing specialist, and ISGN, a mortgage technology... Read More

Servicers Frustrated with Recent HAMP Changes

Servicers have publicly endorsed recent revisions to the Home Affordable Modification Program to address negative equity, but privately, some lenders have raised issues with the Treasury Department’s revisions. Preliminary feedback indicates that some HAMP servicers anticipate difficulty in implementing the new changes, which have been described as potentially... Read More

S&P, Moody’s Face Subprime MBS Rating Scrutiny

Standard & Poor’s and Moody’s Investors Service were the latest companies to face the Senate Permanent Subcommittee on Investigations in a series of hearings exploring Wall Street’s involvement in high-risk mortgage markets. “By first instilling unwarranted confidence in high-risk securities and then failing to downgrade them in a responsible manner, the credit rating agencies... Read More

News Briefs

The House this week approved legislation that would allow the U.S. Department of Agriculture’s rural housing... Moody’s Investors Service continued to downgrade non-agency mortgage-backed securities, including action... The Federal Deposit Insurance Corp. last week issued two securities totaling $1.81 billion in notes backed... Subprime mortgages for properties in Washington, DC, “contained a clear racial component not... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results