Securities

Browse articles from all of our Newsletters related to Securities.

December 15, 2017 - IMFnews

What We’re Hearing: Bitcoin Comes to the Rescue of Homebuyers / Not There Yet / Would the White House Dare Fire Mel Watt? / Probably Not? / Shrinking the GSE Role / Judging the Profitability of MBS Guarantees

Of course, the Trump administration has a history of shooting first and asking questions later…


December 15, 2017 - IMFnews

Did the GSEs Play a Role in Slowing Non-Agency SFR Deals?

Moody’s said GSE participation will continue to erode the sector’s reliance on commercial MBS as a source of financing…


December 15, 2017 - IMFnews

Continued Growth for Agency MBS in 3Q17

The fastest-growing segment is the Ginnie Mae market…


December 15, 2017 - IMFnews

After Years of Unrated MBS Deals, Great Ajax Breaks the Mold

Great Ajax is a real estate investment trust that formed in 2014 and went public in early 2015.


December 15, 2017 - Inside MBS & ABS

FHLBank of Seattle Lost Appeal to Sue Moody’s for Risky MBS Purchase

The Federal Home Loan Bank of Seattle lost an appeal in an MBS case against Barclays Capital this week in which it claimed the investment banker made false statements or left out certain facts about the securities it sold in 2008. But the Court of Appeals of Washington State ruled that the FHLBank was fully aware of what it was buying at the time.


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

GNMA’s Latest Effort to Rein in VA Lenders Augurs Additional Policy Changes in the Future, Analysts Say

New pooling restrictions announced last week by Ginnie Mae to curb churning and prepayment speed spikes are likely a precursor to future changes in pooling and refinancing policies at Ginnie and the Department of Veterans Affairs, according to analysts.


December 15, 2017 - Inside MBS & ABS

Freddie Focuses on Affordable Housing In its Inaugural Single-Family Rental Deal

After exploring the single-family rental market for the better half of a year, Freddie Mac an-nounced a $161 million pilot deal with CoreVest American Finance Lender. The government-sponsored enterprise said its foray into the market is aimed at providing affordable housing for low-income and working families.


December 15, 2017 - Inside MBS & ABS

SEC Said to Have Given Tacit Approval of Sale Treatment For CMBS Issuers Selling Risk Retention to Third Parties

Participants in the commercial MBS market appear to have some certainty regarding the use of third-party purchasers to meet risk-retention requirements. The Securities and Exchange Commission seems to have helped resolve concerns about the accounting treatment for such deals, though a formal statement hasn’t been issued.


December 15, 2017 - Inside MBS & ABS

Non-Agency Single-Family Rental Securitization Volume Peaked in 2015, Analysts Don’t See a Rebound Coming

Issuance of single-family rental securities started in 2013 and hit $7.17 billion in 2015, according to Inside MBS & ABS. Industry analysts suggest that the relative boom in issuance is over due to a number of factors, including activity by the government-sponsored enterprises.


December 15, 2017 - Inside MBS & ABS

Janet Yellen’s Last Hurrah: A Final Rate Hike, And Don’t Expect More Info on the Great Unwind

The three most notable aspects of Janet Yellen’s final press conference as the chair of the Federal Re-serve were the expected comments in support of the central bank’s 25 basis point rate increase, positive economic expectations of pending tax reform efforts, and confirmation the Fed is unlikely to provide much information about its balance sheet reduction going forward.


December 15, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


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 14, 2017 - IMFnews

MBA Chief Dave Stevens: The GSE Capital Buffer is a Distraction

The CHLA repeated its plea that FHFA Director Mel Watt withhold GSE dividend payments to Treasury and allow Fannie and Freddie to build capital…


December 14, 2017 - IMFnews

Short Takes: Keeping Tabs on GSE Dividends / The GOP Tax Plan and DTAs / Good News for ‘Conforming’ Jumbos? / LendingTree Getting Frothy? / First Republic Bank Stands Out in Second Liens

The share price of online loan broker LendingTree is looking a bit pricey these days at $337.80 a unit...


December 14, 2017 - IMFnews

Stop the Presses: A GSE Bill Passes the House Financial Services Committee but…

The panel approved the bill on a partisan vote of 33 to 27. It was one of 13 bills advanced by the panel…


December 13, 2017 - IMFnews

Short Takes: GSE Dividend Payments: All Systems Go? / Cutting GSE Shareholders out of the Equation? / Wintrust Buying Mortgage Assets from VA Lender / UWM and MC Strike Deal / Chase Exec Bolts for Hamilton

In a new blog posting, Investors Unite asks the basic question: “Are Fannie’s and Freddie’s foes driving GSE reform?”


December 12, 2017 - IMFnews

REITs and Nonprime Lenders Look to Strike ‘Working Relationships’

Mike Fierman, managing partner and co-CEO of the Angel Oak Companies: “I get calls every day” from investment funds.


December 12, 2017 - IMFnews

JPM’s New Non-Agency MBS Chock Full of ‘Agency Eligible’ Loans

The conforming mortgages in the deal were largely originated by correspondent lenders…


December 11, 2017 - IMFnews

Short Takes: And Now for a Word About Bitcoin / Can Trump Clear the Air? / Consultant Wonders about Endorsements / MIAC Selling NPLs, RPLs / Farmer Mac CEO Fired with No Severance

One of these days an answer will arrive, but until a mortgage company is sold for Bitcoins, we’ll stay on the sidelines…


December 11, 2017 - IMFnews

The Industry Shows Concern (Once Again) about GSE Technology and Potential Abuses

MBA: Fannie and Freddie should only undertake those activities that support secondary market liquidity…


December 8, 2017 - Inside MBS & ABS

Reducing Loan Payment Was More Effective Than Cutting Principal During Financial Crisis: JPMCI

A recent report from the JPMorgan Chase Institute found that payment reduction was the most effective form of post-crisis loan modification, and a 10 percent drop in the mortgage payment lowered default rates by 22 percent.


December 8, 2017 - Inside MBS & ABS

Private Sector Debates CRT Transaction Structures in Latest HFS Subcommittee Hearing on Housing Reform

Panelists during a House Financial Services Subcommittee on Housing and Insurance hearing this week disagreed on the type of credit-risk sharing transfers that future MBS guarantors should use in a reformed housing-finance system.


December 8, 2017 - Inside MBS & ABS

ABS Backed by Annuities and Life-Contingent Structured Settlements Earns AAA Rating

A subsidiary of DRB Capital is set to issue a $59.9 million ABS backed by annuities and life-contingent structured settlement receivables. The deal received AAA ratings from Morningstar Credit Ratings late last week.


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.


December 8, 2017 - Inside MBS & ABS

Issuance of Non-Agency MBS Backed by Non-QMs Set to Take Off in 2018, Including Nonprime and Prime Loans

The dollar volume of non-agency MBS backed by non-qualified mortgages could double or even triple next year, according to industry analysts. The increased issuance is expected to come from nonprime and prime borrowers who don’t qualify for conforming mortgages.


December 8, 2017 - Inside MBS & ABS

Single Security and CSP On Target for 2019, Steps To Prepare Market Participants Being Taken Now

The single security initiative and issuance of the first uniform MBS are on track for implementa-tion and issuance in the second quarter of 2019 and the government-sponsored enterprises are taking steps to make sure the market is ready, according to a progress update released this week by the Feder-al Housing Finance Agency.


December 8, 2017 - Inside MBS & ABS

Hensarling Outlines Keys to Housing-Finance Reform As Momentum Builds, a Bright Future for Ginnie?

It appears that Congressional reform of the housing-finance system – and final resolution of Fan-nie Mae and Freddie Mac – is back on track with a key piece of good news for MBS investors: an ex-plicit federal guarantee on conventional product looks likely.


December 8, 2017 - Inside MBS & ABS

Ginnie Mae Announces New Measures to Address Rapid Refinancing, High Prepayments in MBS Pools

Ginnie Mae this week announced new guidelines to curb the churning of VA loans and high MBS prepayment speeds – the first in a series of measures developed by a joint Ginnie/VA task force to address the problem.


December 8, 2017 - IMFnews

Hensarling is Ready to Deal on GSE Reform, but Will it Happen?

Rep. Hensarling: “This means the government needs to be in the last-loss position, with multiple layers of private capital, as diversified as possible, stacked up before it.”


December 8, 2017 - Inside MBS & ABS

Agency MBS Issuance Up Slightly in November As Freddie Mac Notches Another Big Month

Issuance of agency single-family MBS was up modestly in November, stemming a two-month slide in production, according to a new Inside MBS & ABS ranking and analysis.


December 8, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


December 8, 2017 - IMFnews

Agency MBS Issuance Up Slightly in November. Another Big Month for Freddie

It was Freddie Mac’s second-largest month of the year...


December 7, 2017 - IMFnews

Short Takes: Not Happy with Jeb’s GSE Comments / Lame Duck or Not… / White House Leaning Toward Michael Bright / Granite Ramps Up Commercial Commitments / Dart Hires Finance VP

It's only a matter of time before the White House officially nominates acting Ginnie Mae president Michael Bright to be the permanent head of the agency...


December 7, 2017 - IMFnews

Ginnie Mae Issues New Rules to Stem Loan Churning

Acting Ginnie Mae President Michael Bright also issued a warning that expulsion from the program for “lenders who produce pools with inexplicably fast prepayment speeds” was a distinct possibility.


December 7, 2017 - IMFnews

If Rep. Hensarling Gets His Way, GSE Shareholders Would be Wiped Out

If the Texas Republican gets his way, investment firms including Pershing Square and Fairholme Funds stand to lose the millions of dollars…


December 6, 2017 - IMFnews

HFSC Chairman Hensarling Makes it Official – He’s Open to Idea of U.S. Backing Mortgages, but Still Wants to Kill Fannie and Freddie

However, Hensarling is adamant that the plug be pulled on Fannie Mae and Freddie Mac...


December 6, 2017 - IMFnews

Short Takes: DoubleLine Eyeing Non-QM Sector / Connecticut Lender Attempts ‘12 in 12’ / Sen. Warren Worries about OMB Staffers Embedded at CFPB / English Gets to Keep Her Regular Job, for Now / A Promotion at LoanLogics

Sen. Elizabeth Warren wants a complete list of OMB staffers who have been detailed to the CFPB by Mulvaney...


December 6, 2017 - IMFnews

Redwood Unveils Expansion Plans: Funding Nonbanks and Lending on Investment Properties

Redwood: “We will offer new ways for these [nonbank] sellers to optimize their capital bases…”


December 5, 2017 - IMFnews

A Small Gain for Warehouse Lending in 3Q17, but Providers Nervous About Lower Usage Rates

Overall, consultant Larry Charbonneau described warehouse lending as “still a great business.”


December 5, 2017 - IMFnews

Short Takes: When it Comes to GSE Issues, No Lobbying Please / A Large MSR Package Forthcoming? / KBW Ends Coverage of Walter / Newfi Gets Fannie Approvals, FHA / Yes, Cordray is Running for Governor / Redfin Director Departs Suddenly

We understand that a fairly large bulk portfolio of mortgage servicing rights might be hitting the auction block soon...


December 5, 2017 - IMFnews

The Nonprime Revival Continues: MBS Issuance Could Triple in 2018

The issuance figures suggest that investors are gaining comfort with the non-QM asset class…


December 5, 2017 - IMFnews

FHFA Updates CSP Project: $661.6 Billion of Issuance Thus Far for Freddie; A Fear of Price Differentials?

The FHFA said it’s working with Fannie and Freddie to “develop processes to identify and align those enterprise programs, policies, and practices that could materially affect prepayments.”


December 4, 2017 - IMFnews

A Wide Variety in Securitizations of MSR Assets

Ocwen Asset Servicing Income Series 2014-1 was secured by MSR related to $11.80 billion of mortgages serviced for Freddie Mac.


December 4, 2017 - IMFnews

3Q17 Mortgage Buyback Activity Higher at Freddie, Lower at Fannie

GSE buyback activity has trended lower over the past two years…


December 1, 2017 - IMFnews

What We’re Hearing: Yes, There’s a Senate GSE Reform Bill in the Works / Acting Ginnie Mae President Has Some MBS Ideas / How Many Loss Positions are There? / The Mulvaney Effect? / Ranieri will Stick Around

Mick Mulvaney has been in charge of the CFPB all week and we’ve yet to hear one prediction that subprime mortgage lending will revive with a vengeance…


December 1, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


December 1, 2017 - Inside MBS & ABS

Velocity Commercial Capital Finds Success with CMBS Backed by Mix of Residential Investment Properties

Velocity Commercial Capital is preparing to issue its second commercial MBS of the year backed by mortgages on residential investment properties and smaller commercial properties. The issuer’s deals have experienced some delinquencies but losses have been minimal.


December 1, 2017 - Inside MBS & ABS

Fed’s MBS Portfolio to Roll Off Within 3-4 Years, Trump Nominee Powell Tells Senate Banking Panel

There may be more room for private investors in the secondary mortgage market sooner than ex-pected, if congressional testimony this week from Federal Reserve Gov. Jerome Powell, President Trump’s nominee to replace Fed chief Janet Yellen, is a reliable indicator.


December 1, 2017 - Inside MBS & ABS

CRT Report Shows Market Implied G-fee Lower Than Actual Amount Fannie and Freddie Charge

The credit-risk transfer programs at Fannie Mae and Freddie Mac suggest that the two government-sponsored enterprises are charging MBS guarantee fees that are somewhat higher than market ex-pectations, according to a new Federal Housing Finance Agency report.


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.

33%

No. It’s still difficult compliance/regulatory-wise.

20%

Maybe. It’s under consideration.

33%

Not now. But things could change as 2018 progresses.

13%