Securities

Browse articles from all of our Newsletters related to Securities.

October 20, 2017 - IMFnews

What We’re Hearing: A Good (but Not Great) Year About to End / A Top-10 Lender for Sale? (No) / Will Mel Watt Clear the Air on ‘Zero Capital’? / The Freddie Mac Rumor / Ocwen’s Future May be Now?

Plenty of executives we’ve spoken to the past few months believe the industry is in for a considerable spate of M&A in the year ahead. Then again, we’ve heard that prediction before...


October 20, 2017 - IMFnews

Agency MBS Trading Had Strong Month in September

For traders, the good news is that MBS issuance increased to $357.2 billion in the third quarter, the strongest performance of the year...


October 20, 2017 - IMFnews

GOP Critical of Fannie/Freddie QM Exemption

FHFA chief Mel Watt acknowledged the advantage provided to GSE-eligible mortgages...


October 20, 2017 - IMFnews

Brokers Wanted to Send a Message to Wholesalers, Starting a ‘BRAWL’

BRAWL chief Tony Casa said if loan brokers want to send a message to firms that operate in both wholesale and retail, brokers should take their business elsewhere.


October 20, 2017 - IMFnews

Non-Mortgage ABS Issuance Tumbled in 3Q17, But…

Bank of America Merrill Lynch and Guggenheim Securities were the top underwriters of business ABS at the three-quarter mark of 2017…


October 20, 2017 - IMFnews

SEC Provides Redwood with No-Action Letter Regarding Investments in GSE Credit-Risk Transfer Deals

The GSEs are also working toward issuing credit-risk transfer deals as real estate mortgage investment conduits, which would allow REITs to hold more of the assets.


October 20, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


October 20, 2017 - Inside MBS & ABS

Chase Urges CFPB to Provide TRID Cures, Resolve Liability Issues to Encourage Investors to Return

JPMorgan Chase, like most mortgage industry participants, endorses the solution that the Consumer Financial Protection Bureau has planned to resolve what’s known as the “black hole” in the bureau’s integrated disclosure rule. However, some big changes still need to be made if private capital is going to fully return to the mortgage market; namely, more cures for errors and greater clarity when it comes to legal liability. “Chase strongly supports the CFPB’s proposal to eliminate ...


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

Moody’s Warns Higher Debt-to-Income Ratios Could Lead to Rising Default Rates for Certain MBS & ABS

Default rates could increase for certain types of MBS and ABS as some borrowers experience higher debt-to-income ratios, according to Moody’s Investors Service. The rating service pointed to new results from the Federal Reserve’s Survey of Consumer Finances conducted every three years. The survey showed a modest increase between 2013 and 2016 in the median ratio of debt payments to family incomes among debtors in the 20.0 percent to 39.9 percent income percentile ...


October 20, 2017 - Inside MBS & ABS

Interest in Whole-Loan Trading Increases As Non-Agency Mortgage Production Stirs

It’s been a busy year in whole loan trading for MIAC Capital Markets. The advisory firm has sold $1.2 billion of product year to date, almost double what it did all of last year. And the way things stand today, 2018 could be even better. According to Steve Harris, managing director for MIAC, the reason for the pickup in activity is simple: growth in non-agency lending, coupled with stronger demand from depositories for loans that can help them meet Community Reinvestment Act requirements ...


October 20, 2017 - Inside MBS & ABS

Citadel Gets Rated by Morningstar. Investors Will Get A Crack at Its First Non-QM MBS in a Few Months

Citadel Servicing Corp. has talked about issuing its first non-prime MBS, possibly late this year, and this week cleared a hurdle when it received lender and servicer ratings from Morningstar. According to sources close to the company, the anticipated MBS – backed by newly originated loans that do not meet the qualified-mortgage test – could be as large as $250 million. Nomura is assisting Citadel with the deal, a source noted, adding that the bond may not actually hit the market until ...


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 20, 2017 - Inside MBS & ABS

Arch Brings First Mortgage Insurance Linked-Notes Deal with Credit Rating

Arch Capital Group is set to issue a mortgage-insurance linked note transaction. Unlike two other re-insurance deals from a similar shelf, Bellemeade Re 2017-1 received credit ratings, expanding the investor base for the transaction. A mezzanine tranche of the deal received preliminary BBB ratings from Morningstar Credit Rat-ings this week. Mortgages delivered to the government-sponsored enterprises with an unpaid principal balance of $29.30 billion are included in the transaction ...


October 20, 2017 - Inside MBS & ABS

Non-Mortgage ABS Issuance Tumbled in 3Q17, Market Still Well Ahead of Last Year’s Pace

New production of non-mortgage ABS slackened during the third quarter as several key sectors retreated from unusually strong volume numbers in the previous three-month period. A new Inside MBS & ABS ranking and analysis reveals total ABS production fell 16.7 percent from the second quarter to $49.43 billion. That brought year-to-date volume to $162.18 billion, up 15.5 percent from the first nine months of 2016. Unless production tanks in the ... [Includes two data charts]


October 19, 2017 - IMFnews

Ocwen’s Departure from the Wholesale Sparks Speculation: An Eventual Sale?

Ocwen’s recent barrage of regulatory settlements, coupled with the sale of the wholesale division and the recent hiring of investment banker Chris Whalen, is sparking talk...


October 19, 2017 - IMFnews

Mortgage Due Diligence Firms Open to Working Together to Standardize Reporting

Each due diligence firm applies its own interpretation of compliance...


October 18, 2017 - IMFnews

Short Takes: The Little Guy Gets a G-Fee Break / A Coming Spike in G-Fees? / More Financial Maneuvers by Radian / A Hot Streak for Non-Agency Prime MBS / A Stock Market Crash Warning from Treasury Secretary Mnuchin

Might this suggest that g-fees charges could spike next year when zero hour comes?


October 18, 2017 - IMFnews

Arch Continues Re-Insurance Transactions Started by UG; New Issuance the First to Receive a Rating

Mortgages delivered to the GSEs with an unpaid principal balance of $29.30 billion are included in the transaction.


October 18, 2017 - IMFnews

Redwood Aims for Jumbos Outside of Banks’ Focus

Redwood’s Choice loan program allows for debt-to-income ratios of up to 49.9 percent while the limit for Select is 43.0 percent…


October 17, 2017 - IMFnews

Promontory MortgagePath Expands Private-Label Origination Platform

PMP was founded by former Comptroller of the Currency Eugene Ludwig and mortgage industry veteran Bruce Witherell…


October 17, 2017 - IMFnews

Ranked No. 442 as an Originator, Fintech Firm Corrals $457 Million in Financial Commitments

Formed in 2014, LH originated $598 million in 2016, ranking 442nd overall, according to Home Mortgage Disclosure Act figures compiled by Inside Mortgage Finance.


October 17, 2017 - IMFnews

Ginnie Mae Issuance Topped $120B in 3Q17, the Best Reading of the Year

Ginnie Mae issuers securitized $85.4 billion of purchase loans in the third quarter, falling just short of the record $85.4 billion set in the third quarter of last year.


October 16, 2017 - IMFnews

Short Takes: Large Nonbank Ready to Enter Second-Lien Market / Mortgage Layoffs in California? / The 30th Anniversary of ‘Black Monday.’ Beware? / UWM Rolls out ‘Client Loyalty’ Tool for Brokers / Annaly CEO will Become Chairman, Eventually

A large nonbank is about to enter the second-lien market...


October 16, 2017 - IMFnews

Citadel Receives Ratings from Morningstar; Look for a Nonprime MBS in January

Morningstar said the company’s underwriting process, quality control and compliance functions were factors in the rankings…


October 16, 2017 - IMFnews

Stearns Lending Reveals it Has a Mortgage Joint Venture with SoFi

Stearns, however, doesn’t service any mortgages for SoFi…


October 16, 2017 - IMFnews

Surprise: Prime Non-Agency MBS Issuance Spiked in the Third Quarter

The nonprime MBS category includes some deals better categorized as Alt A…


October 13, 2017 - Inside FHA/VA Lending

Ginnie Reveals Nearly 10 Percent Exposure in Disaster Areas

An estimated 9.8 percent of Ginnie Mae’s business may be potentially at risk due to hurricanes Harvey, Irma and Maria, according to data released recently by the agency. The data represent the number of Ginnie loans and their unpaid principal balance amounts in presidentially declared disaster areas in Texas, Florida, Georgia, Puerto Rico and the U.S. Virgin Islands. A total of 1.07 million mortgage loans with an unpaid principal balance of $184.5 billion have been affected. Ginnie Mae’s current mortgage-backed securities portfolio totals $1.9 trillion. The data only refer to the geographic locations of all affected properties underlying loans in Ginnie MBS pools and do not indicate the percentage of those that may have sustained damage during a storm. Hurricane Irma had the highest share of affected loans, 6 percent, while Harvey and Maria accounted for 3 percent and 1 percent, respectively. Irma caused the ...


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 - IMFnews

What We’re Hearing: FHFA Chief Has a ‘Number of Options’ on Zero Capital / Is That a ‘Hard’ Deadline? / Once Tax Reform is Done, Next Up: the GSEs / Can HUD Secretary Carson Get the IG to Back Off on the FCA? / Ocwen Kills Wholesale. Meaning?

Meanwhile, one detail about the capital buffer falling to zero remains unclear: On Jan. 1 will every single penny of the $600 million (at each) be carted away?


October 13, 2017 - IMFnews

Non-Agency MBS Issuance Weakened in 3Q17 Despite Upswing in Prime Jumbo Deals

The bright spot was the prime jumbo MBS market where some $2.97 billion of new bonds were issued during the third quarter…


October 13, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


October 13, 2017 - Inside MBS & ABS

GSE Shareholders More Confident As Judge Releases New Government Documents to Plaintiff Attorneys

As Fannie Mae and Freddie Mac shareholders inch closer to having hundreds of government documents released in pending shareholder lawsuits surrounding the conservatorship and preferred stock purchase agreement, they are more confident the court will rule in their favor. In the latest development in Fairholme Funds v. the United States, Federal Claims Court Judge Margaret Sweeney last week granted a motion to compel the disclosure of documents filed over the summer by ...


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

Rating Agencies Split on Airline ABS Deal, Fitch Suggests KBRA Misjudged Transaction

Fitch Ratings and Kroll Bond Rating Agency both recently took detailed looks at an airline ABS deal, Business Jet Securities 2017-1, and came to much different assessments of the transaction and its risks to investors. Fitch implied that KBRA did not properly evaluate the potential for losses. According to a presale report from KBRA, the BJETS notes are secured by payments on leases and loans secured by business jet aircraft. “The collateral portfolio consists of 181 business jets ...


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 13, 2017 - Inside MBS & ABS

Some Options Exist for MBS/ABS Issuers to Finance Risk Retention, though Compliance is Complicated

Risk-retention requirements established by the Dodd-Frank Act generally require sponsors or contributing lenders to retain risk from MBS and ABS issuance to align their interests with those of investors. Some issuers are financing their risk-retention obligations even though regulations regarding such transactions are murky. “A security sponsor or majority-owned affiliate must reconcile a variety of different requirements in structuring a secured financing of its risk-retention ...


October 13, 2017 - Inside MBS & ABS

Regulatory Relief Pushed by Treasury for MBS And ABS Looks Likely, though Not Immediate

The Treasury Department released a report late last week calling for a variety of regulatory reforms for the MBS and ABS markets. Many of the reforms aim to increase issuance and are likely to come into effect, particularly those that don’t require action by Congress. The recommendations were part of a response to an executive order issued by President Trump calling for regulators to identify actions to be taken to align financial regulations with “core principles” established by ...


October 13, 2017 - Inside MBS & ABS

Non-Agency MBS Issuance Weakened in 3Q17 Despite an Upswing in Prime Jumbo Issuance

A slowdown in new scratch-and-dent deals proved to be a drag on non-agency MBS issuance during the third quarter, according to a new analysis and ranking by Inside MBS & ABS. Total non-agency MBS production fell to $10.99 billion in the third quarter of 2017, a 29.9 percent decline from the previous period. It was the slowest quarter of 2017, although year-to-date production was still up 14.1 percent from the first nine months of 2016. The major factor was ... [Includes two data charts]


October 12, 2017 - IMFnews

Short Takes: Residential Production Plunges at Citi / MSR Holdings Down Too / But a Nice Profit for 3Q17 / JPMorgan Readies New Non-Agency MBS / Ocwen Exiting Wholesale Channel / Fannie Announces New NPL Auctions

Citi’s third-party servicing portfolio is down to $49.1 billion from $147.6 billion at Sept. 30, 2016...


October 12, 2017 - IMFnews

KBW: Don’t Expect Much Improvement from Gain-on-Sale

“We estimate that gain-on-sale margins will be roughly flat quarter to quarter,” writes KBW analyst Bose George…


October 11, 2017 - IMFnews

Short Takes: Ginnie Mae Worried about Certain Nonbanks? / The David Kittle Nomination? / KKR Closes Fund to New Investors / SFR Hits $33 Billion / A New Hire for Grandbridge

There’s still no word from the White House on when it will nominate industry executive David Kittle to be the next president of Ginnie Mae...


October 11, 2017 - IMFnews

Fannie MH Pilot Program Could Boost This Niche Market

While the pilot is limited to New Hampshire home buyers, Fannie thinks the pilot could open the door to other states doing something similar…


October 11, 2017 - IMFnews

The GSEs Should Report Robust Earnings for 3Q17. Here’s Why…

A previously announced legal settlement with Royal Bank of Scotland will soon hit the books...


October 10, 2017 - IMFnews

As the New Quarter Begins, More GSE MSR Deals Hit the Auction Block

The first offering is for $524 million and comes from an independent mortgage banking firm…


October 9, 2017 - IMFnews

Short Takes: Treasury Working on GSE Ideas? / Will Trump Get Involved Directly? / Sauri Launches FinKube / Too Much Overhead, Maybe / A New Hire for Endeavor

With Trump being a real estate developer – though that part of his career is on hold right now – it will be interesting to see if he takes a hands-on approach to reforming the GSEs...


October 9, 2017 - IMFnews

Average SFR Vacancy Rate Increased in August, but Investor Demand Remains Strong

“Only two single-borrower, single-family rental securitizations posted a retention rate below 70.0 percent,” Morningstar said…


October 9, 2017 - IMFnews

Judge in Closely Watched GSE Shareholder Case Moves to Release More Documents

The plaintiffs have long argued that the government is trying to keep roughly 1,500 documents hidden under the deliberative process and bank examination privileges.


October 9, 2017 - IMFnews

GSE Purchase-Loan Share Hit 63 Percent in 3Q17, a 10-Year High

The flow of home loans for first-time buyers was up a robust 24.7 percent on a sequential basis…


October 6, 2017 - IMFnews

What We’re Hearing: A Blowout Quarter for Freddie? / Pulling the Zero Capital Lever in Denver? / Mark Calabria for FHFA Director? / RIP: the Savings and Loan Industry / A New Idea: Crowd Funding to Help Delinquent Borrowers? / A New Hire for BSI

In a new report, Cowen gives the early lead on the FHFA job to Mark Calabria, chief economist to Vice President Mike Pence...


Poll

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

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

vote to see results