MBS Characteristics

Browse articles from all of our Newsletters related to MBS Characteristics.

October 20, 2017 - Inside MBS & ABS

Moody’s Warns Higher Debt-to-Income Ratios Could Lead to Rising Default Rates for Certain MBS & ABS

Default rates could increase for certain types of MBS and ABS as some borrowers experience higher debt-to-income ratios, according to Moody’s Investors Service. The rating service pointed to new results from the Federal Reserve’s Survey of Consumer Finances conducted every three years. The survey showed a modest increase between 2013 and 2016 in the median ratio of debt payments to family incomes among debtors in the 20.0 percent to 39.9 percent income percentile ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie Reveals Nearly 10 Percent Exposure in Disaster Areas

An estimated 9.8 percent of Ginnie Mae’s business may be potentially at risk due to hurricanes Harvey, Irma and Maria, according to data released recently by the agency. The data represent the number of Ginnie loans and their unpaid principal balance amounts in presidentially declared disaster areas in Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. A total of 1.07 million mortgage loans with an unpaid principal balance of $184.5 billion have been affected. Ginnie Mae’s current mortgage-backed securities portfolio totals $1.9 trillion. The data only refer to the geographic locations of all affected properties underlying loans in Ginnie MBS pools and do not indicate the percentage of those that may have sustained damage during a storm. Hurricane Irma had the highest share of affected loans, 6 percent, while Harvey and Maria accounted for 3 percent and 1 percent, respectively. Irma caused the ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rolled To Year’s High Mark in 3Q17

Ginnie Mae issuers rode a wave of purchase-mortgage lending to deliver $120.46 billion of forward mortgages during the third quarter of 2017, the highest three-month volume for the year, according to a new analysis and ranking by Inside FHA/VA Lending. Third-quarter volume was up 9.6 percent from the April-June cycle. The data excluded FHA reverse mortgages and loan amounts are truncated in Ginnie’s mortgage-backed securities disclosures. Without those limitations, total Ginnie MBS issuance rose 9.5 percent to $123.37 billion in the third quarter. Purchase mortgages were the engine behind the growth. Ginnie issuers securitized $85.35 billion of purchase loans in the third quarter, falling just short of the record $85.41 billion set in the third quarter of last year. Although most Ginnie purchase loans (58.7 percent) were FHA loans, the biggest increase was in such loans guaranteed by the ... [Charts]


October 13, 2017 - Inside MBS & ABS

Non-Agency MBS Issuance Weakened in 3Q17 Despite an Upswing in Prime Jumbo Issuance

A slowdown in new scratch-and-dent deals proved to be a drag on non-agency MBS issuance during the third quarter, according to a new analysis and ranking by Inside MBS & ABS. Total non-agency MBS production fell to $10.99 billion in the third quarter of 2017, a 29.9 percent decline from the previous period. It was the slowest quarter of 2017, although year-to-date production was still up 14.1 percent from the first nine months of 2016. The major factor was ... [Includes two data charts]


October 6, 2017 - Inside MBS & ABS

SEC Considering Moving Forward with Requiring Loan-Level Disclosures for More Types of ABS

Requirements for asset-level disclosures for certain ABS fell off of the Securities and Exchange Commission’s most recent regulatory agenda but the issue remains on the regulator’s radar, according to industry participants. Asset-level disclosure requirements for MBS and ABS have been a concern since 2010 when the SEC proposed revisions to Regulation AB. Some of the so-called Reg AB2 revisions were ultimately finalized in 2014, establishing disclosure requirements for ...


September 29, 2017 - Inside FHA/VA Lending

VA Jumbo Securitization Drops, FHA Jumbo Origination Slips in 2Q

Wells Fargo recaptured its crown as the leading VA jumbo securitizer, pushing Penny Mac back to second place even as the market dropped further in the second quarter. The volume of VA jumbo loans securitized during the second quarter declined by 5.2 percent from the prior quarter and by 11.8 percent during the first half of 2017 compared to the same period last year. VA jumbo mortgage originations were off by 4.3 percent from the first quarter, according to an analysis by Inside FHA/VA Lending affiliate Inside Mortgage Finance. Agency-jumbo production sagged in the second quarter but the results were not uniform. Fannie Mae production was up 6.5 percent from the prior quarter, while FHA jumbo securitization gained 7.2 percent during the period. At the same time, VA jumbo securitization was down 5.2 percent to $7.4 billion from $7.8 billion, while Freddie Mac saw a hefty 27.8 percent drop in ... [Charts]


September 15, 2017 - Inside MBS & ABS

Thriving Market for Securities Backed by Timeshare Loans: Low Delinquencies and Attractive Yields

An affiliate of Interval Leisure Group priced a timeshare securitization last week as the market for such deals keeps humming along. Timeshare securities are backed by vacation ownership interest loans that tend to perform relatively well and carry attractive yields. Some $2.0 billion of timeshare ABS have priced this year, according to S&P Global Ratings. In all of 2016, $2.6 billion of timeshare ABS was issued, according to the Securities Industry and Financial Markets Association. VSE 2017-A VOI Mortgage from ILG is...


September 14, 2017 - Inside Mortgage Finance

Redwood Sourcing ‘Expanded Prime’ Jumbo Mortgages From Hundreds of Correspondents

Redwood Trust has seen strong demand from borrowers and correspondent lenders for its “expanded prime” program that the aggregator introduced last year. The real estate investment trust’s Choice products allow for somewhat looser underwriting than the super-prime mortgages that have dominated the jumbo market after the financial crisis. The Choice program was introduced in April 2016. Volume has increased relatively quickly and could top $1.0 billion this year. Officials say...


Poll

The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

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