MBS & ABS Performance

Browse articles from all of our Newsletters related to MBS & ABS Performance.

May 26, 2017 - Inside FHA/VA Lending

Around the Industry

Moody’s Rates Credit Suisse FHA Securitization Transaction. Moody’s assigned investment-grade ratings to Credit Suisse’s first securitization deal in 2017 backed by seasoned re-performing and performing, fully amortizing, fixed- and adjustable-rate mortgages insured by FHA. The deal is the first FHA-insured re-performing transaction since 2010, according to the rating agency. The collateral pool is comprised of 672 first-lien, fixed-rate loans and ARMs with a weighted average updated FICO score of 614 and loan-to-value ratio of 94.2 percent. Approximately 82.4 percent of the loans in the collateral pool were previously modified. Approximately 52.8 percent of the loans have been current for at least 24 months. Another 17.3 percent of the loans have been current for more than 12 months. Comments Sought on Various Information Collection Proposals. The Department of Housing and ...

May 26, 2017 - Inside MBS & ABS

Latest Deals Show Market Acceptance of Freddie And Fannie Re-performing Loan Programs

Fannie Mae and Freddie Mac both announced new re-performing loan sale transactions this month as the two government-sponsored enterprises look for ways to shed illiquid assets. Fannie began marketing its first re-performing loan sale back in November to help reduce its balance sheet. The program continues to gain more traction with each sale. That first sale totaled $789.2 million in unpaid principal balance. Fannie has since announced...

May 12, 2017 - Inside MBS & ABS

Securitization of Nonprime Personal Installment Loans Expected to Increase, AAA Ratings Are a Possibility

Issuance of ABS backed by nonprime personal installment loans is expected to increase, according to S&P Global Ratings. The rating service hasn’t assigned AAA ratings to such ABS, though S&P said it will approach each deal on a case-by-case basis. Between 2013 and 2016, $10.50 billion of ABS backed by branch-based unsecured personal installment loans was issued, according to S&P. The rating service highlighted the sector recently, noting that personal installment loans don’t receive as much attention as marketplace lending, which had $15.10 billion in MBS and ABS issuance between 2013 and 2016. “Branch-based fixed-rate, fixed-term unsecured personal installment loans may not be...

May 8, 2017 - Inside the CFPB

Ocwen Faces Ratings Downgrades, Pending Class-Action Litigation

Ocwen Financial Corp. is facing more trouble than just its struggle with the CFPB and a number of state regulators. The mortgage lender/servicer also faces the increasing likelihood of some ratings downgrades as well as pending class-action lawsuits. Fitch Ratings recently revised Ocwen’s U.S. residential mortgage-backed securities servicer ratings outlook to negative. “The revision of the rating outlook for the servicer ratings is based on uncertainty surrounding the financial and operational impact of new regulatory actions taken by the CFPB and the multi-state actions following the findings of the Multi-State Mortgage Committee,” Fitch said. The negative rating outlook also takes into consideration Ocwen’s financial condition. Fitch placed the company’s and its corporate parent’s long-term issuer default rating on “rating watch ...

May 5, 2017 - Inside MBS & ABS

Vacancy Rate for Single-Family Rental Securitizations Hits Record Low, Spring Augurs Well for Sector

The vacancy rate across single-borrower, single-family rental securitizations rated by Morningstar Credit Ratings fell to its lowest level in a year, as high retention rates for full-term leases kept performance in the sector within expectations, according to a company report. The vacancy rate dropped to 4.1 percent in March, driven by an improving average retention rate, which rose for the third consecutive month, the report said. The average retention rate for all single-borrower, single-family rental securitizations now stands at 79.5 percent, it noted. In addition, the overall turnover rate held...

May 5, 2017 - Inside MBS & ABS

Former Rating Service Official Proposes Materiality Standards for Reps and Warrants on Non-Agency MBS

As industry participants continue to work on revamping standards and practices in the non-agency MBS market, Mark Adelson proposed a number of materiality standards for representations and warranties on new issuance. Adelson is an independent consultant and was S&P Global Ratings’ chief credit officer from May 2008 until December 2011. Adelson published his proposal in the latest issue of The Journal of Structured Finance, which he edits. Adelson focused...

April 28, 2017 - Inside MBS & ABS

Moody’s, Fitch Pummel Ocwen with Downgrades Following Legal Actions by CFPB, State Regulators

Ocwen Financial’s travails continued to worsen this week after rating agencies announced adverse ratings actions amid the servicer’s mounting regulatory and legal problems. On April 24, Moody’s Investors Service placed Ocwen’s servicer assessment on review for a possible downgrade. On April 25, Fitch Ratings revised its previous rosy affirmation of the company’s primary servicer rating and stable outlook to negative. Both firms said the ratings actions were due to the increased regulatory scrutiny on Ocwen’s servicing operations, which could lead to hefty penalties that could pose a threat to the company’s financial stability. On April 20, a consortium of state mortgage regulators filed...

April 28, 2017 - Inside MBS & ABS

Changes Proposed by S&P to Non-Agency MBS Rating Criteria Would Favor Prime Mortgages

S&P Global Ratings proposed changes this week to its criteria for rating non-agency MBS. The changes would provide higher ratings to certain tranches of non-agency MBS backed by new prime mortgages while prompting lower ratings for new issuance backed by seasoned mortgages. The rating service is considering a number of adjustments to foreclosure assumptions, loss severity projections and changes relating to the evaluation of qualitative factors. “The proposed revisions to our methodologies and assumptions are...

April 21, 2017 - Inside MBS & ABS

Few Losses on MBS Backed by Re-Performing Loans, But Underwriting Likely to Worsen in Future Deals

Losses on rated non-agency MBS backed by re-performing loans have been minimal, according to DBRS. RPLs have been one of the dominant types of mortgages in post-crisis non-agency MBS. Issuance of MBS backed by RPLs increased significantly in 2015, according to DBRS. Some $13.4 billion of volume was issued that year, compared with a total of $5.9 billion of issuance between 2010 and 2014. The deals often don’t receive credit ratings, which can make them difficult to track. Some $15.3 billion of RPL MBS were issued...

April 14, 2017 - Inside FHA/VA Lending

GNMA Officials Attribute Decline in VA Refis to Anti-Churning Policy

A steep drop in VA-backed securities issuance in the first quarter of 2017 suggests that Ginnie Mae’s efforts to curb serial refinancing of VA loans are working, according to agency officials. Speaking on a panel at the annual VA Lenders Conference in Kansas City, MO, this week, Ginnie executives said that a change in pooling requirements for streamlined refinance mortgages appears to have curbed a destructive appetite for refinancing new VA loans within six months of closing. The practice has caused faster prepayments in Ginnie mortgage-backed securities pools and smaller payouts to investors. VA refi volume fell 42.7 percent from the previous quarter (see chart on page 2), contributing significantly to the 32.2 percent decline in total VA loan securitization during the period. John Getchis, senior vice president at Ginnie Mae, said he does not think the churning trend will continue because the ...

April 14, 2017 - Inside FHA/VA Lending

PennyMac Claims Top Rank in Ginnie MBS Production in 1Q17

There is a new boss in the Ginnie Mae mortgage-backed securities market. PennyMac Financial rose to the top of the issuer ranking in the first quarter of 2017 despite a sharp decline in volume, according to a new analysis and ranking by Inside FHA/VA Lending. PennyMac issued $10.78 billion of single-family Ginnie securities during the first three months of the year. The figures in this analysis are based on Ginnie loan-level disclosures, which truncate loan amounts to $1,000 increments. PennyMac’s first-quarter production was off 27.9 percent from the fourth quarter of 2016, a slightly bigger decline than the 24.8 percent drop in overall Ginnie issuance. Even though the firm fared slightly worse than the total market, its first-quarter downturn was less severe than Wells Fargo’s. Wells has been the top Ginnie producer for a long time, as well as the top player in most segments of the ... [ Charts ]


Should any GSE reform bill from Congress be based on the concept of preserving Fannie Mae and Mac and their existing operations?

GSE reform won’t happen in my life time.

vote to see results