MBS Investors

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

January 12, 2018 - Inside FHA/VA Lending

Ginnie MBS Program Faltered In 2017, Refi Flow Up in 4Q17

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]

January 12, 2018 - Inside Nonconforming Markets

Angel Oak Sees Strong Demand for Non-QMs

Institutional investors are getting more comfortable with non-qualified mortgages, according to Angel Oak Capital Advisors. The firm announced last week that it raised $291 million in capital commitments for a private credit fund that will focus on non-QMs. The initial fundraising goal for Angel Oak Real Estate Investment Fund I was $250 million, according to AOCA. Officials weren’t willing to disclose how the fund will invest in non-QMs, but it has been involved in non-agency ...

January 12, 2018 - Inside Nonconforming Markets

DoubleLine Entity Plans to Issue Non-Agency MBS

DoubleLine Capital, an investor in non-agency mortgage-backed securities, established an entity in recent months with plans to issue non-agency MBS. The issuance and related activities will be conducted via the new Mortgage Opportunities Capital, according to filings with the Securities and Exchange Commission. The filings were completed in October but didn’t gain prominence until a recent story published by Bloomberg. Jeffrey Gundlach, DoubleLine’s CEO, initially pushed back ...

January 5, 2018 - Inside Mortgage Trends

New Treatment of Dividends a Boon for mREITs

Mortgage and commercial real estate investment trusts stand to benefit from a provision in the Tax Cuts and Jobs Act of 2017 that offers individuals a 20 percent deduction for REIT dividends. Analysts at Keefe, Bruyette & Woods said the deduction applies to “qualified business income,” which includes qualified dividends paid by REITs. The tax reform bill was signed into law on Dec. 22, 2017. Previously, non-capital gains dividends from a REIT were taxed as ...

January 5, 2018 - Inside MBS & ABS

Fees Applied to MBS Trades to Pay for FICC Technology Development Are Set to Expire

Trading MBS will be slightly less expensive this year as the Fixed Income Clearing Corp. is preparing to eliminate a fee it imposed to help pay for technology upgrades. The fee applied to FICC members and generally ranged from $1,000 per month to $20,000 per month based on trading activity.

December 22, 2017 - Inside Nonconforming Markets

Few Losses on Non-QM MBS, Some Delinquencies

Investor demand for non-agency mortgage-backed securities with non-qualified mortgages appears to have been boosted by the performance of such deals issued in recent years. There have been some delinquencies – owing to somewhat loose underwriting standards – but investors have largely been protected from losses. DBRS recently analyzed 18 non-QM MBS issued since 2015 and found that only three deals had experienced losses as of September. A $150.4 million deal from ...

December 22, 2017 - Inside Nonconforming Markets

Annaly Seeing Strong Returns from Whole Loans

Significant investments in new non-agency whole loans are paying off, according to officials at Annaly Capital Management. The real estate investment trust started buying the loans in the second half of 2016 after acquiring Hatteras Financial. As of the end of the third quarter, Annaly held non-agency whole loans with an unpaid principal balance of $896.0 million. Whole loans accounted for 28.0 percent of Annaly’s residential credit portfolio as of the end of September, up from a ...

December 15, 2017 - Inside MBS & ABS

Daily Trading Volume in Agency MBS Rises Again; Overseas Investors Not Likely to Shy Away from Fannie/Freddie Bonds

The average daily trading volume in agency MBS inched up to $223.6 billion in November, the second best showing of the year, according to figures compiled by the Securities Industry and Finan-cial Markets Association. The only other month that was stronger was January at $229.8 billion.

December 15, 2017 - Inside MBS & ABS

Investors Seem Willing to Absorb Agency MBS When The Fed Finally Begins Paring its Massive Portfolio

The agency MBS market continued to grow at a measured pace during the third quarter of 2017, with several key investor groups showing interest in the market, according to a new Inside MBS & ABS analysis.

December 8, 2017 - Inside Nonconforming Markets

Redwood Set to Fund Lending by Other Nonbanks

Redwood Trust is looking to expand its footprint into funding originations by nonbanks as well as putting a greater emphasis on acquiring investment-property mortgages. The strategy announced this week was detailed one day after Redwood revealed that its CEO will retire in May. Officials said changes in the housing market have created opportunities for the real estate investment trust to “leverage our competitive strengths and expand our strategic mission.” They said funding ...

December 8, 2017 - Inside MBS & ABS

REITs and Nonprime Originators Looking to Strike ‘Working Relationships’ that Benefit Both of Them

A handful of real estate investment trusts are looking to partner with nonprime lenders in a move that could help prime the pump for a significant increase in securitizations of non-agency mortgages that stretch the credit box.


How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.
11 to 30. We’re feeling slightly bullish.
31 or more. We’re in expansion mode.
None. We’re staying right where we are, for now.
We’re cutting back.

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