MBS Investors

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

August 17, 2018 - Inside MBS & ABS

Ginnie Officials Describe Counterparty Risk Tools, Saying Everybody’s in the Same Boat

Ginnie Mae officials described a two-pronged approach to assuring MBS investors that the agency is protecting their interests from the risk that issuers might fail to deliver principal and interest payments in a timely manner.

August 17, 2018 - Inside MBS & ABS

MBS Trading Volume Hits Low for the Year As Gross New Issuance Remains Subdued

The average daily trading volume in agency MBS fell to $204.1 billion in July, the weakest reading of the year, according to the Securities Industry and Financial Markets Association.

August 17, 2018 - Inside MBS & ABS

Banks Retreat Slightly from MBS Market in 2Q18 Despite Big Moves by Handful of Large Investors

As a group, commercial banks and thrifts ended the second quarter of 2018 with slightly reduced holdings of single-family MBS, although several institutions raised their stakes in the market significantly, according to a new Inside MBS & ABS analysis and ranking. [Includes two data charts.]

August 10, 2018 - Inside FHA/VA Lending

USDA Issuance Down at Midpoint From 2017, Up in Second Quarter

Fewer rural single-family mortgages and modified home loans with a USDA guarantee were securitized during the first six months of 2018 compared to last year. Delivery of USDA loans into Ginnie Mae pools over the last two quarters totaled $8.6 billion, down 10.1 percent from the same period last year but up 12.4 percent in the second quarter from the prior period. PennyMac topped all USDA issuers with $1.7 billion worth of rural housing MBS issued during the first half of 2018, up 22.1 percent year-over-year. New issuance also rose 30.0 percent in the second quarter from the previous quarter, enough for a 20.2 percent share of the securitized USDA market. ... [chart]

August 10, 2018 - Inside FHA/VA Lending

MBA Urges Congress to Fix Problem of ‘Orphaned’ VA Mortgage Loans

The Mortgage Bankers Association called upon Congress to pass legislation to restore Ginnie Mae eligibility for so-called orphaned VA loans, which have caused a temporary disruption in the government-backed secondary market. In written testimony to the Senate Committee on Veterans’ Affairs last week, the MBA urged lawmakers to make technical corrections to restore the eligibility of certain Interest Rate Reduction Refinance Loans for pooling. The MBA estimated the VA orphan loan mess at roughly $500 million. Due to new loan seasoning requirements in the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act, sime IRRRLs were rendered ineligible for Ginnie MBS pools. The loans were in transit when legislation addressing the problem of VA loan churning and serial refinancing became law in May. The new law’s seasoning provisions turned out to be ...

August 10, 2018 - Inside MBS & ABS

Annaly and AGNC Investment Continue to Hum Along But MBS Growth May Eventually Disappoint Investors

The nation’s two largest real estate investment trusts that focus on the MBS market – Annaly Capital Management and AGNC Investment Corp. – have built up their MBS portfolios over the past year despite sluggish second-quarter activity.

August 3, 2018 - Inside MBS & ABS

Home Price Appreciation Having an Impact on Issuance of Single-Family Rental Securities, Prompting Refinances

Refinances of outstanding single-family rental securitizations are accounting for a growing share of new issuance. The trend has been prompted, in part, by home price appreciation, which has made it more difficult for some firms to source new properties. Some $4.41 billion of single-family rental securities were issued in the first half of 2018, according to Inside MBS & ABS. Blackstone Group’s Invitation Homes dominates the sector. The firm, which merged with Starwood Waypoint Homes ...

July 27, 2018 - Inside Nonconforming Markets

Annaly Packs More Non-QMs into Latest MBS

Annaly Capital Management plans to include a much higher share of non-qualified mortgages in its latest non-agency mortgage-backed security than the first deal issued by the real estate investment trust this year. Non-QMs will account for 45.4 percent of the $383.5 million issuance, according to presale reports by Fitch Ratings and Kroll Bond Rating Agency. Annaly’s first MBS was largely stocked with loans that had seasoned for at least 10 years – well before the QM rule came along ...

July 20, 2018 - Inside MBS & ABS

Investor Demand for Mortgages is Strong in the Secondary Market, Non-QMs an Area of Focus

Mortgage originations have been trending lower but there’s still plenty of demand in the secondary market for new production, according to industry participants. There’s demand from both MBS investors and aggregators that package mortgages for securitization.

July 13, 2018 - Inside FHA/VA Lending

MBA Asks HUD to Rethink Stance on VA Refis as Eligible Collateral

The mortgage industry this week continued to look for ways to resolve the VA streamline refi loan mess, which arose from the implementation of statutory seasoning requirements under the Dodd-Frank reform act, even as Ginnie Mae pointed to Congress to come up with a solution. At issue is approximately $500 million worth of “orphaned” VA Interest Rate Reduction Refinance Loans that are now ineligible for Ginnie Mae securitization. The Mortgage Bankers Association is asking Congress for a legislative fix but is also looking for other forms of relief. Pete Mills, MBA’s senior vice president of residential policy and member management, is trying to drum up investor interest in the orphan loans, which, for now, appear destined for the secondary “scratch and dent” market. More buyers could potentially generate higher bids for the loans and lower losses for nonbanks that could not deliver them ...

July 13, 2018 - Inside FHA/VA Lending

Seasonal Factors Boost Ginnie Mae MBS Issuance in Second Quarter

The spring homebuying season fueled a relatively modest increase in production of Ginnie Mae single-family mortgage-backed securities during the second quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Lenders issued $98.66 billion of Ginnie MBS backed by forward mortgages during the April-May cycle. That was up 6.6 percent from the first three months of the year, but 2018 continued to lag behind the pace set in 2017 by 10.7 percent. Given current trends, annual Ginnie MBS issuance in 2018 could fall short of the $400 billion mark for the first time since 2014. The flow of FHA and VA purchase mortgages was up a solid 23.7 percent from the first to the second quarter, bringing the total for the first half of the year to $121.01 billion. However, that was down 4.7 percent from the same period in 2017. Ginnie securitized $75.02 billion of FHA purchase loans in the ... [Charts]

July 12, 2018 - Inside MBS & ABS

Fitch Warns of Differences in ‘Full’ Representations and Warranties from Various Issuers of Non-Agency MBS

Non-agency MBS investors might not be aware of the differences in representations and warranties provided by issuers of new non-agency MBS, according to Fitch Ratings. In a recent report, the rating service noted that issuers are diverging from standard practices in terms of “full” rep-and-warrant frameworks.

July 12, 2018 - Inside MBS & ABS

Conventional MBS Trading Volume Slipped in June, But Non-Agency Sales Hit a High for the Year

The average daily trading volume in agency MBS fell to $223.2 billion in June, a slight decline from the month prior, according to figures compiled by the Securities Industry and Financial Markets Association.


With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.


11% to 25%. It’s a challenging market.


25% to 40%. It’s going to be very ugly.


No opinion.