REITs

Browse articles from all of our Newsletters related to REITs.

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...


September 8, 2017 - Inside MBS & ABS

Fannie Details Additional Considerations for Proposed REMIC Structure for CRT Deals

Fannie Mae and Freddie Mac appear poised to go ahead with their plans to structure future credit-risk transfer debt offerings as real estate mortgage investment conduits to expand the investor base. “No significant concerns have been raised to date, and, provided that the market continues to respond favorably, we expect to conclude our feedback period soon,” said Fannie. Back in May, the government-sponsored enterprises announced...


September 1, 2017 - Inside FHA/VA Lending

FTHB Purchase Securitization Up in First Half of 2017, FHA Leads Pack

First-time homebuyers accounted for $170.3 billion of securitized purchase mortgages during the first half of 2017, according to an Inside FHA/VA Lending analysis of loan-level data for mortgage-backed securities issued by Ginnie mae, Fannie Mae and Freddie Mac. Purchase-mortgage origination to first-time homebuyers was up 15.7 percent year-over-year and comprised 50.3 percent of total purchase-mortgage loans securitized during the six-month period. FHA accounted for 36.8 percent ($61.4 billion) of first-time homebuyer purchase mortgages delivered into agency pools from beginning to midyear, while conventional purchase mortgages with private mortgage insurance accounted for 28.3 percent ($48.3 billion) over the same period. FHA and private MI are the two leading mortgage insurers for first-time homebuyers. Together, they have provided mortgage insurance for nearly ... [Charts]


August 25, 2017 - Inside MBS & ABS

Signs are Bullish for Mortgage-Investing REITs – Thanks, In Part, to the Federal Reserve and Its Balance Sheet Policy

Real estate investment trusts that invest in MBS and other mortgage-related assets are having a field day this year, raising billions of dollars in new capital while seeing their share prices increase across the board. Moreover, according to an analysis by Inside MBS & ABS, several top-ranked REITs are now trading much closer to their 52-week highs than their lows while maintaining hefty dividend payments to their shareholders. Annaly Capital Management, for example, the largest holder of agency MBS at $75.2 billion, is...


August 18, 2017 - Inside FHA/VA Lending

No Ginnie Mae Summit in 2017, Event Moved to January 2018

Ginnie Mae will not have an annual summit this year but has rescheduled it for January 2018, according to Ginnie Mae’s new spokesperson. Michael Huff, senior advisor, congressional and stakeholder relations, said a new administration and staff departures have caused organizers to reconsider having the annual Ginnie Mae Summit this year, usually held in October. The Trump administration has yet to announce a nominee for the top job at Ginnie Mae since former president Ted Tozer left in January. David Kittle is reportedly a leading contender, but there has been no official announcement or confirmation. So far, Kittle has declined to comment. Kittle is a mortgage industry veteran who began as a loan officer and now heads his own company. He also was a top executive with the Mortgage Bankers Association and managed, among other things, the group’s political action committee. In addition, Kittle co-founded the ...


August 18, 2017 - Inside Nonconforming Markets

Starwood to Acquire Non-QMs with FHLBank Help

Officials at Starwood Property Trust announced last week that the company will acquire non-qualified mortgages with funding provided by new membership in the Federal Home Loan Bank system. Starwood is a real estate investment trust that has traditionally focused on commercial mortgages. Starwood said it gained membership in the FHLBank of Chicago shortly after the end of the second quarter of 2017. Jeffrey DiModica, president of Starwood, said the REIT will ...


August 18, 2017 - Inside MBS & ABS

Merger of SFR Operators Invitation Homes and Starwood Could Spell More Opportunities for Fannie and Freddie

The proposed $4.3 billion merger of single-family rental operators Invitation Homes and Starwood Waypoint Homes will create a corporate landlord with 82,000 homes – and a behemoth of a potential client for Fannie Mae and possibly Freddie Mac. Earlier this year, Fannie agreed to provide Invitation Homes with $1 billion in financing. The deal broke new ground for the government-sponsored enterprise, but it also raised questions about whether a government-owned entity that received billions in taxpayer assistance should be lending money to a company (Invitation Homes) grubstaked by Wall Street. Since the Invitation-Fannie arrangement was unveiled, no other significant SFR financing vehicles involving a GSE has...


August 11, 2017 - Inside MBS & ABS

Wells Withholding Funds from Vintage Non-Agency MBS Prompts Concerns About the Market for New Loans

The surprise tactic by Wells Fargo to withhold millions of dollars from investors in vintage non-agency MBS spurred Redwood Trust officials to try to protect the reputation of jumbo MBS. “We’re frustrated, not just for us, but for other market participants,” Christopher Abate, Redwood’s president and CFO, said late last week during the real estate investment trust’s earnings call. “For now, we’ll just have to continue updating and educating new-issue investors, and I hope for a quick resolution to this legacy litigation issue.” As of the end of June, Wells Fargo had withheld...


August 11, 2017 - Inside MBS & ABS

New Issuers Poised to Enter Non-Agency MBS Market Bringing Deals Backed by Jumbo Loans and Non-QMs

A number of new issuers appear set to come to market with non-agency MBS backed by newly originated jumbo loans and non-qualified mortgages. Officials at Redwood Trust said they see new issuers emerging, which they said will put pressure on loan prices for aggregators while increasing liquidity in the secondary market. Since the third quarter of 2016, the jumbo MBS arena has been dominated...


August 11, 2017 - Inside MBS & ABS

Mortgage REITs Boost Holdings During 2Q17 and Show Healthy Appetite for Risk-Transfer Deals

Real estate investment trusts that focus on the residential MBS market reported a modest increase in their portfolios during the second quarter of 2017. The 15 mortgage REITs tracked by Inside MBS & ABS held a combined $233.34 billion of residential MBS at the end of June. That was up 1.4 percent from the end of the first quarter, though down 2.9 percent from the midway point in 2016. Ten of the REITs reported...[Includes one data table]


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

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