Securities

Browse articles from all of our Newsletters related to Securities.

November 17, 2017 - IMFnews

What We’re Hearing: A Mystery (for Now): Franklin Codel’s Dismissal at Wells / A Major Changing of the Guard is Afoot / Rick Glass: Only the Strong Will Survive / Mick, Tell us How You Really Feel About the CFPB / Fannie & Freddie CEOs Seem Content…

A major changing of the guard is now afoot in the mortgage industry...


November 17, 2017 - IMFnews

Fannie and Freddie Approved to Re-Enter LIHTC Market for First Time in 10 Years

Freddie said it plans to close its first investment in January 2018.


November 17, 2017 - Inside MBS & ABS

Fannie Planning to Test Construction Loan Program to Help Spur Affordable Housing

Fannie Mae is considering a pilot program to help consumers more easily get construction loans. While the program is just in the early stages of consideration, the government-sponsored enterprise sees the program as a way to increase affordable housing options for homebuyers.


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

Hurricane-Related Losses for Mortgage Industry Still an Open Question. Ginnie Keeps Close Eye on Nonbanks

Fannie Mae and Freddie Mac set aside a combined $1.9 billion to cover potential losses to MBS collateral from the powerful hurricanes that slammed the U.S. and its territories this fall. Ginnie Mae, meanwhile, hasn’t issued an update on affected loans in several weeks, but the government guarantor is trying to stay optimistic.


November 17, 2017 - Inside MBS & ABS

Cleveland Fed Calls ‘Peer-to-Peer’ Loans ‘Predatory’ As Marketplace Issuance Continues to Grow

So-called peer-to-peer loans “resemble predatory loans in terms of the segment of the consumer market they serve and their impact on consumers’ finances,” according to a study published last week by the Federal Reserve Bank of Cleveland. The warning comes as issuance of ABS and MBS from marketplace lenders continues to grow, with growing acceptance from rating services and investors.


November 17, 2017 - Inside MBS & ABS

Analysts Say FHA’s Tangible Benefit Test Might Be the Solution to VA’s Churning Problem

The Ginnie Mae/Veterans Affairs task force is meeting regularly to find a solution to the VA churning problem that is triggering rapid prepayments to the detriment of MBS investors – and a test currently used by the FHA might provide the answer.


November 17, 2017 - IMFnews

Angel Oak Set to Issue its Third Nonprime MBS of the Year; Bank-Statement Loans 35 Percent of the Collateral

Self-employed borrowers whose incomes were determined with bank statements account for 35.0 percent of the collateral.


November 17, 2017 - Inside MBS & ABS

Pending Tax Reform Has MBS Between ‘A Rock and a Hard Place,’ Analysts Say

Three analysts at Wells Fargo Securities discussed in a new report this week what could happen to the agency MBS market as a result of pending tax reform, one version of which was passed by the U.S. House of Representatives this week. As always, the devil is in the details; hence, the bitter in-fighting among entrenched interests on Capitol Hill.


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 17, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


November 17, 2017 - IMFnews

Pending Tax Reform has MBS Between ‘A Rock and a Hard Place’

If substantial tax reform is enacted, it would likely lead to rising expectations about growth and inflation, leading to a selloff in rates…


November 17, 2017 - IMFnews

Watt Likely Won’t Act on Zero Capital Buffer This Year, but Consensus Forming on a GSE Bill?

Republicans are reportedly on board with the federal MBS guarantee but reluctant to backstop future guarantor entities…


November 17, 2017 - IMFnews

Mortgage REITs Boost Residential MBS Holdings in 3Q17

MBS-investing REITs boosted their holdings by 10.1 percent on a sequential basis…


November 16, 2017 - IMFnews

House Panel Passes Bill That Would Override State Usury Laws

It remains to be seen whether the language of the bill will be incorporated into the regulatory relief package…


November 15, 2017 - IMFnews

Chase to Include a Large Amount of Non-QMs in its Latest Jumbo MBS

The new MBS from JPM concentrates on jumbo mortgages. The average loan balance is $952,747.


November 14, 2017 - IMFnews

Correspondent Share of FHA Loans Nears the 49 Percent Mark

Correspondent programs are most dominant in the FHA market, perhaps reflecting a preference among large producers to have recourse…


November 13, 2017 - IMFnews

Invictus Includes Loans Aggregated by Shelter Growth in Latest Nonprime MBS

Mortgages aggregated by Shelter Growth account for 43.5 percent of the collateral.


November 10, 2017 - Inside MBS & ABS

When It Comes to Fed Balance Sheet Changes, Concern, Uncertainty and Caution Dominate

There are many unpredictable variables and economic factors outside the control of the Federal Reserve, which makes it hard to project the impact of winding down the U.S. central bank’s historic investment in agency MBS. But economic experts at Fannie Mae are cautiously expressed anticipating greater volatility, an inevitable financial shock and potential changes in the Fed’s strategy as markets evolve.


November 10, 2017 - Inside MBS & ABS

Trading in MBS Muted in October as Prepayment Speeds Increase. Waiting ‘Correction’ in Bond Prices?

The average daily trading volume in agency MBS totaled $222.5 billion in October, a slight dip from the month prior, but the third best reading of the year, according to figures compiled by the Secu-rities Industry and Financial Markets Association.


November 10, 2017 - Inside MBS & ABS

Fannie and Freddie QM Patch Under Attack By GOP Lawmakers, Trump Administration

The special qualified-mortgage treatment for home loans eligible for sale to the government-sponsored enterprises is getting more attention lately as some say that it gives Fannie Mae and Freddie Mac an unfair advantage.


November 10, 2017 - Inside MBS & ABS

Secured Overnight Financing Rate Seen as Good LIBOR Replacement by MBS/ABS Participants

With uncertainty regarding whether the London Interbank Offered Rate will continue to be pub-lished after 2021, the Federal Reserve is considering establishing an alternative reference rate for indus-try participants.


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 10, 2017 - Inside MBS & ABS

Effort to Include a Deal Agent in Non-Agency MBS Moves Forward with Development of Key Performance Indicators

The Structured Finance Industry Group this week unveiled key performance indicators (KPIs) for deal agents to track in new non-agency MBS. The measurements were developed by a group of in-dustry participants to help guide deal agents in protecting MBS investors.


November 10, 2017 - Inside MBS & ABS

Commercial Mortgage Securitization Activity Surged In 3Q17, Big Gains in Agency and Private Markets

New issuance of MBS backed by income-property mortgages jumped sharply in the third quarter of 2017, hitting levels not reached in over a decade, according to a new Inside MBS & ABS analysis.


November 10, 2017 - Inside MBS & ABS

MBS-ABS-Issuance-11-10-2017

One page of issuance data.


November 10, 2017 - IMFnews

As Promised: If the GOP Lowers the Corporate Tax Rate, the GSEs are in Deep Trouble

“A significant reduction in the corporate tax rate would result in a significant net loss, and that could result in a loss for the year,” said Fannie CEO Timothy Mayopoulos…


November 10, 2017 - IMFnews

Surprise: CMBS Has its Best Issuance Quarter Since 2Q08

Fannie, Freddie and Ginnie continued to dominate multifamily activity…


November 10, 2017 - IMFnews

What We’re Hearing: The Wilbur Ross Story / Tapping Mortgage Expertise / Enter the Phrase ‘Legal Proceedings’ and See What You Find / David Kittle and the Ginnie Mae Job / Reverse Lender has Record Month / A New Hire for Better Mortgage

You might say that Wilbur Ross got out of Ocwen while the getting was good...


November 9, 2017 - IMFnews

SFIG Details Key Performance Indicators for Deal Agents on Non-Agency MBS

While the concept was introduced more than a year ago, the specific duties for a deal agent remained a work in progress…


November 9, 2017 - IMFnews

Short Takes: $250K a Year in Severance for Impac President / Capital One will Remain in Multifamily / Goldman Wins Fannie Mae Bid / Quicken Gets Some Company at the Top / A New Hire for AmeriFirst

Although Capital One is exiting single-family lending, the bank will continue to provide “specialized" multifamily financing...


November 8, 2017 - IMFnews

Ellington Readies First Non-Agency MBS. Loans Supplied by LendSure Mortgage

LendSure has financial backing from Ellington, among other investors…


November 8, 2017 - IMFnews

Treasury’s GSE Plan Still a ‘Work in Progress.' No Balance Sheet Allowed?

A guarantee fund would be developed to cover losses.


November 7, 2017 - IMFnews

Short Takes: The ‘Think-Tank’ GSE Hearing / More Red Ink for AAMC / AmeriSave’s New President / A Servicing Milestone for Flagstar / Equity Prime Hires New CFO

Tuesday’s panel discussion has been dubbed the “think tank” hearing because it includes representatives from the Urban Institute, the Milken Institute and American Enterprise Institute…


November 7, 2017 - IMFnews

Long-Time GSE Critic Peter Wallison Doesn’t Disappoint: Kill Fannie and Freddie, He Urges

According to Wallison: “There is nothing about the way the government has managed the housing finance system for the last 50 years that would remotely recommend a continuing government role.”


November 7, 2017 - IMFnews

Retail Still the Largest Source of Agency Loans

Correspondents generated 38.8 percent of the market and posted the highest purchase-mortgage concentration, 77.8 percent.


November 6, 2017 - IMFnews

Mortgage Brokers Poised to Gain Market Share?

Brian Vieaux, a senior vice president of third-party originations, said loan brokers are an “extension” of Flagstar’s reach through the retail channel.


November 3, 2017 - IMFnews

What We’re Hearing: The Mortgage Cycle Turns / PE Firms Ready to Pounce? / Show Mr. Cooper the Door? / Impac in Play? / loanDepot Retail Chief David Norris Departs for Law Enforcement Project / More Nonprime MBS on the Way

Ocwen will not be sold through a stock deal, but Nationstar could be...


November 3, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


November 3, 2017 - Inside MBS & ABS

GSEs Report $7.6 Billion in Earnings for 3Q, Reduced Portfolios Mean More Income Generated by G-Fees

This week, the government-sponsored enterprises reported combined earnings of $7.69 billion in the third quarter of 2017, which was up almost $3 billion from the previous period. As the end of the year approaches, they also continue to reduce their retained investment portfolios as mandated by the Federal Housing Finance Agency. Fannie Mae and Freddie Mac earnings were boosted by a legal settlement with the Royal Bank of Scotland over non-agency MBS ... [Includes one data chart]


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

Private-Equity Firm to Issue a Non-Agency MBS Backed By Mortgages on Residential Investment Properties

American Mortgage Investment Partners Management is set to issue a relatively rare non-agency MBS backed by individual mortgages on residential investment properties. The private-equity fund is preparing to issue a deal named RCO 2017-INV1 Trust, according to documents filed last week with the Securities and Exchange Commission. Investors that use mortgages to purchase residential properties typically use financing backed by Fannie Mae or Freddie Mac. But the ...


November 3, 2017 - Inside MBS & ABS

Tesla Brings ABS Backed by Residential Solar- Power Installations, Deal Receives A- Rating

Tesla Energy is preparing to issue a $344.0 million ABS backed by proceeds from solar-power generating systems on residential properties. The planned TES 2017-1, LLC, Series 2017-1 received an A- rating from Kroll Bond Rating Agency last week. The transaction is secured by proceeds on a portfolio of 33,499 leases and power-purchase agreements associated with solar photovoltaic systems. The leases and PPAs were originated by SolarCity, which does business under ...


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 ...


November 3, 2017 - Inside MBS & ABS

Treasury’s ‘GSE Plan’ Still a ‘Work in Progress,’ May Leave Future MBS Guarantors With No Balance Sheet

Although it’s still unclear when the Treasury Department will release its blueprint for resolving the epic conservatorships of Fannie Mae and Freddie Mac and reforming the housing-finance system, industry officials are sifting through the Trump administration’s tea leaves. One source who claims to be familiar with Treasury’s thinking on the matter said a consensus is developing around a model where the government-sponsored enterprises re-emerge as “utilities” with little or ...


November 3, 2017 - Inside MBS & ABS

Unexpected Surge in Freddie Production Helped To Steady Agency MBS Issuance in October

New issuance of agency single-family MBS in October was almost even with the previous month, but there was a sharp swing of market share between the two government-sponsored enterprises, according to a new Inside MBS & ABS ranking and analysis. Total new MBS issuance by Fannie Mae, Freddie Mac and Ginnie Mae came to $113.99 billion last month, a modest 0.5 percent decline from September. But while Fannie production slumped 11.5 percent, Freddie ... [Includes two data charts]


November 3, 2017 - IMFnews

A Spike in Freddie MBS Issuance Helped Steady Volumes for October

But while Fannie production slumped 11.5 percent, Freddie saw a robust 23.9 percent jump in new issuance in October…


November 2, 2017 - IMFnews

Between Multiple Hurricanes and Wild Fires, a Market Develops for a New Breed of ‘Scratch & Dent’ Loans

According to bidders in the market, the early action focuses on loans that are “stuck” on warehouse lines.


November 2, 2017 - IMFnews

Fannie Mae Reports Strong Earnings for 3Q17; Hurricanes Hurt but RBS Settlement Helped

Through the first nine months of the year, Fannie has posted impressive net earnings of $9.02 billion.


Poll

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