MBS Investors

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

November 17, 2017 - Inside MBS & ABS

Credit Suisse, MBIA Continue Fight Over MBS Fraud Claims; DOJ, Barclays Resume Settlement Talks

Credit Suisse and MBIA Insurance Corp. continued their wrangling in New York state appellate court in a $235 million MBS securities lawsuit brought by the bond guarantor in 2009.

November 17, 2017 - Inside MBS & ABS

Mortgage REITs Boost Residential MBS Holdings In 3Q17, Fed Unwind Could Affect Dollar Rolls

Real estate mortgage investment trusts continued to build up their agency MBS investment port-folios during the third quarter, though most REITs had a more difficult time in the less-liquid non-agency MBS market.

November 10, 2017 - Inside FHA/VA Lending

Will Net Tangible Benefit Test Stop Churning? Yes, Analysts Say

A new net tangible benefit test for ensuring that a VA borrower benefits from a refinancing appears to be the obvious solution to the VA’s churning problem, according to analysts at Bank of America Merrill Lynch (BAML). Modeled after the FHA net tangible benefit test, the test seems to be a “foregone conclusion” for VA, analysts said. A Ginnie Mae/VA task force is currently working to resolve the problem, which is causing rapid prepayments in Ginnie mortgage-backed securities and raising serious doubts as to whether aggressive refinancing truly benefits veterans and servicemembers. “There is a critical need to ensure that veteran borrowers are not harmed by repeated refinancings through VA’s Interest Rate Reduction Refinance Loan program,” said Mortgage Bankers Association President/CEO David Stevens during a recent appearance before the House Financial Services Committee. IRRRLs, also referred to ...

November 10, 2017 - Inside FHA/VA Lending

Correspondent Platforms Feast on FHA, VA Securitization Market

Correspondent-based lending operations are accounting for a growing share of the FHA and VA home loans pooled in Ginnie Mae mortgage-backed securities, according to a new analysis and ranking by Inside FHA/VA Lending. In fact, correspondent originations are the only production channel to see year-over-year growth in FHA and VA business through the first nine months of 2017. Retail and wholesale-broker production is down for both FHA and VA loans. Correspondent programs are most dominant in the FHA market, perhaps reflecting a preference among large producers to have recourse to a primary-market lender if the government later finds defects in how the loan was originated. Correspondents accounted for 48.7 percent of FHA loans pooled in Ginnie MBS during the first nine months of the year, up from 43.1 percent in all of 2016. Volume was up 1.7 percent from the ... [Charts]

November 10, 2017 - Inside MBS & ABS

MBS-Investing REITs Turn in Strong 3Q17 As Industry Waits for Fed’s Portfolio Un-Wind

Annaly Capital Management increased its agency MBS holdings by 16.1 percent in the third quarter. Its closest competitor among real estate investment trusts specializing in the space, AGNC In-vestment Corp., pushed up its investment by 13.3 percent.

November 10, 2017 - Inside MBS & ABS

Mortgage, Equity REITs Will Remain Competitive Despite Cut in Corporate Tax Rates, Experts Say

A proposal in the House Republican tax reform bill significantly lowering the corporate tax rate, at first glance, may seem to put mortgage real estate investment trusts at a competitive disadvantage with non-REITs. However, the disparity would remain beneficial for REITs, according to tax experts.

November 3, 2017 - Inside MBS & ABS

RBS Agrees to Pay to End RMBS Probe; Barclays Fights MBS Suit; Credit Suisse Bares Relief Plan

The Department of Justice has announced a non-prosecution deal with the Royal Bank of Scotland, which includes a $44 million settlement, to resolve a criminal probe of the bank’s activities in non-agency MBS and collateralized loan obligations. The probe accused the bank of defrauding more than 30 customers that purchased residential and commercial MBS as well as ABS over a five-year period beginning in 2008. The group that handled the sales of these securities for RBS was ...

November 3, 2017 - Inside MBS & ABS

Fed Holds Rates Steady, Balance Sheet Plan Continues Apace, Powell to Succeed Yellen

The news at the Federal Reserve this week can best be summarized by the term “status quo.” The U.S. central bank held interest rates unchanged, its plan to gradually unwind its massive portfolio continues unchanged, and President Trump nominated Fed governor Jerome Powell to succeed Janet Yellen, likely ensuring more of the same when it comes to the future of both interest rates and the balance sheet. When it came to rates, the Federal Reserve’s Open Market Committee ...

October 27, 2017 - Inside FHA/VA Lending

HUD, VA Provide Additional Relief To Areas Hit by Natural Disasters

The Department of Housing and Urban Development and the Department of Veterans Affairs have taken additional steps to provide relief to homeowners in disaster areas hit by hurricanes Harvey, Irma and Maria. This week, the FHA issued policy waivers in storm-ravaged Puerto Rico and fire-stricken counties in California, allowing damage inspections to be completed beginning Oct. 24. FHA currently requires servicers to perform a damage inspection following the close of an “incident period” as determined by the Federal Emergency Management Agency. An incident period is the period For mortgages in disaster areas that have not closed or are pending endorsement, lenders must follow FHA’s guidelines on inspection and repair escrow requirements for loans in such areas. FHA believes that situations in certain jurisdictions in Puerto Rico and California have stabilized and further damage to ...

October 20, 2017 - Inside MBS & ABS

SFIG Broadly Supports Treasury Report Proposed Reforms, But Seeks Minor Tweaks

The Structured Finance Industry Group agrees with many of the proposals made by the Treasury Department in its recent report on regulatory reform for financial markets but seeks more clarity about risk retention requirements. Published earlier this month, the Treasury report said that the requirement that sponsors retain a residual interest in securitizations adds unnecessary cost to securitization as a funding source. In turn, it inhibits the prudent expansion of credit through securitized products ...

October 20, 2017 - Inside MBS & ABS

Ginnie Mae, VA Form Anti-Churning Task Force. SIFMA Backs Efforts; MBA Asks VA to Issue Rule

The securities industry is backing Ginnie Mae’s stepped-up efforts to curb loan churning and rapid refinancing of VA loans and expressed its concern over how such improper lending practices might affect borrowers and MBS investors. In a letter this week to Michael Bright, Ginnie’s chief operating officer and acting president, the Securities Industry and Financial Markets Association lauded the agency’s investigation of aggressive refinancing of VA loans. The practice has ...

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

Annaly Registers 65 Million Shares of Common as The ‘mREIT’ Sector Remains Generally Healthy

Annaly Capital Management, the nation’s largest real estate investment trust focused on the MBS market, hopes to raise upwards of $780 million through the sale of additional shares of common stock – money that it will invest in MBS and related assets. According to a press statement made by the New York-based firm, it also plans to further diversify its investments, putting the new money to work in commercial and “corporate credit assets.” In total, Annaly registered 65 million shares of ...

October 13, 2017 - Inside MBS & ABS

Agency MBS Trading Has Strong Month in September; Non-Agency Volume Was Weak

The average daily trading volume in agency MBS increased to $223.2 billion in September, the second highest reading of the year, according to figures compiled by the Securities Industry and Financial Markets Association. Compared to August, trading volume was up about 12.1 percent, but flat compared to the same month a year ago. The increase in activity coincided with declining bond prices and rising interest rates. As the weekend approached, the yield on the benchmark ...

October 6, 2017 - Inside MBS & ABS

Average SFR Vacancy Rates Rose in August; Investor Demand for SFR Homes to Remain Strong

Vacancy rates are up in the single-family rental space, mostly due to seasonal factors, according to a new report from Morningstar Credit Ratings. Meanwhile, the toll from Hurricane Irma is still being calculated. “The average vacancy rate among single-family rental securitizations climbed to 5.7 percent in August, as property managers dealt with increased lease expirations, typical of the summer months,” analysts from Morningstar said. This was the fifth consecutive monthly increase. They cited two ...

October 6, 2017 - Inside MBS & ABS

Strong Demand for Rated MBS Backed by Re-performing Loans; Chimera Issues First Deal and MetLife is Ready

Investor demand for non-agency MBS backed by re-performing loans has prompted an increase in issuance, with a new emphasis on deals that have credit ratings. Chimera Investment issued its first rated RPL transaction this week and MetLife Investment Management is preparing to enter the market as an issuer. “Rated RPL MBS has fundamentally changed the market,” Scott Waterstredt, a managing director at MetLife, said at the recent ABS East conference. He noted that ...

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 ...


With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.
No. It’s still difficult compliance/regulatory-wise.
Maybe. It’s under consideration.
Not now. But things could change as 2018 progresses.

vote to see results