MBS, ABS Issuance

Browse articles from all of our Newsletters related to MBS, ABS Issuance.

February 16, 2018 - Inside MBS & ABS

Due Diligence Firms Jockey for Position In Growing Expanded-Credit MBS Market

MBS backed by expanded-credit loans increased by more than 400 percent last year, with an even better year anticipated in 2018. And although the growth in terms of dollar volume wasn’t huge, due diligence firms are beginning to feel bullish about their prospects.


February 9, 2018 - Inside FHA/VA Lending

FHA Delinquencies Spike in Puerto Rico as Island Remains in Disarray

FHA delinquencies rose sharply in Puerto Rico following the devastation brought by hurricanes Maria and Irma last year. At the end of 2017, 28.8 percent of FHA mortgages on the island were at some stage of delinquency, including 15.8 percent that have fallen 90 days behind on their mortgage payments. Deutsche Bank Securities analysts believe the spike in delinquency rates overall is “a short-term phenomenon.” They noted that FHA, Fannie Mae and Freddie Mac have declared temporary moratoria on evictions and foreclosures in Puerto Rico and other hurricane-ravaged regions. Issuer exposures in devastated areas remain unclear and Ginnie Mae has not updated its MBS hurricane exposure data since October last year. In the initial disclosure, the agency reported 9.7 percent (1,066,028 loans) of its total MBS portfolio were impacted by Harvey, Irma and Maria. The affected loans’ unpaid principal ...


February 9, 2018 - Inside FHA/VA Lending

VA Calls for Early Disclosures for IRRRLs to Ensure Vets Benefit

The Department of Veterans Affairs will require lenders to provide early disclosures to veterans seeking to refinance into a VA Interest Rate Reduction Refinance Loan. The new policy aims to ensure that the VA streamline refi loan they sought would actually lower their monthly mortgage payments and is not just a scam for lenders to charge higher fees. Loan churning, or serial refinancing, is at the root of the VA policy change. Churning refers to multiple refinancing of an unseasoned mortgage loan within a very short time, often within six months of origination. Serial refinancing may add more payments and interest to the new loan, prolonging debt repayment, and can strip equity. It also potentially raises the risk of default by the borrower. In addition, the risk of prepayment could affect pricing of Ginnie Mae securities, which could cause lenders to charge higher rates on VA loans to make up for the ...


February 9, 2018 - Inside FHA/VA Lending

Ginnie Targets Issuers Responsible For Rapidly Prepaying VA Loans

Ginnie Mae this week warned nine VA lenders suspected of engaging in loan churning to each develop a plan to slow the rapid pace of prepayments they have triggered in the agency’s securitized loan pools. According to Ginnie, the issuers were directed individually to deliver correction action plans containing measures that could be deployed immediately to bring prepayment speeds in line with market peers. The agency told issuers they would be barred from multi-issuer pools if they do not come up with a plan. Participation would be allowed only in the agency’s custom pools. The latest action builds off the Ginnie Mae/VA Loan Churn Task Force, which has been working since September to resolve the churning problem. “We have an obligation to take necessary measures to prevent the lending practices of a few from impairing the performance of our multi-issuer securities, and thus raising the ... [ Chart ]


February 9, 2018 - Inside MBS & ABS

Small Credit Investor Braddock Financial Sees Solid Structured Finance Opportunities in ’18

Braddock Financial, a modest investment fund based in Denver, sees plentiful opportunities as a credit investor in a structured-finance market that officials think is still in the early stages of recovery.


February 9, 2018 - Inside MBS & ABS

Agency MBS Production Down in January as Refinance Activity Slowed, Fannie Volume up on Mod-Loan Pools

Fannie Mae, Freddie Mac and Ginnie Mae issued $102.48 billion of single-family MBS in January, a modest 6.9 percent downturn from the previous month, according to a new Inside MBS & ABS ranking and analysis.


February 2, 2018 - Inside The GSEs

GSE Single-Family Business Off To a Weak Start in 2018

Fannie Mae and Freddie Mac saw declines in the flow of purchase and refinance loans into single-family mortgage-backed securities last month, starting 2018 on a sour note. The two GSEs produced a total of $67.48 billion of new single-family MBS in January, according to a new Inside The GSEs analysis and ranking. That was down 8.8 percent from the previous month and off 26.4 percent from January 2017. It was the GSEs’ weakest monthly output since May 2017, and it would have been worse had Fannie not come up with $4.69 billion in mortgage securities backed by modified loans. Including those mod-backed deals, Fannie issuance was up 5.0 percent from December. Without them, the company’s new MBS issuance fell 5.7 percent in January.


January 26, 2018 - Inside FHA/VA Lending

Congress Passes New Stop-Gap Funding Bill, Ends 3-Day Shutdown

President Trump this week signed a short-term spending bill that would keep the government operating until Feb. 8, 2018. The bill ended a three-day shutdown after the previous spending authority for most of the government expired at midnight on Jan. 19. However, the threat of another shutdown looms. FHA and Ginnie Mae both had contingency plans in place in case the short-lived shutdown dragged on, as it had in 2013. That event lasted for 16 days, at a loss of $1.6 billion a day to the federal government. Under FHA’s emergency plan, the agency would continue to endorse new single-family forward mortgages, but not Home Equity Conversion Mortgages and Title I loans. Ginnie would reduce staffing to essential personnel but continue its secondary market operations. It would continue to remit timely payment of principal and interest to investors, grant commitment authority and support issuance of ...


January 25, 2018 - Inside MBS & ABS

MBS Trading Tapered off in December, Investors Watch Stocks Rise and Worry About Bonds

The daily trading volume in agency MBS averaged $209.1 billion in 2017, the best showing in four years, according to the Securities Industry and Financial Markets Association.


January 25, 2018 - Inside MBS & ABS

A Record Year for Commercial Mortgage Securitization In 2017, Freddie Reports Gigantic Fourth Quarter Volume

A record year in agency multifamily MBS issuance pushed the overall commercial mortgage securitization market to an all-time high in 2017, according to a new analysis by Inside MBS & ABS.


January 19, 2018 - Inside MBS & ABS

MBS and ABS Issuers Tap Financing for Retained Risk, Helping to Minimize Impact of Requirement

Issuers of MBS and ABS are finding ways to finance their holdings of retained risk in the wake of risk-retention requirements that came into effect in 2016, according to attorneys at the law firm of Mayer Brown.


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 MBS & ABS

Latest Servicing-Advance Securitization from New Residential Rated AAA by Morningstar

A planned MBS from affiliates of New Residential Investment received much higher ratings than a similar deal issued by the firm in 2016. The deals are backed by the excess spread tied to servic-ing rights on non-agency mortgages.


January 11, 2018 - Inside Mortgage Finance

With Boost from Refi Business, Private MI Gained Share In 4Q17 Primary MI Market, Agency MBS Data Show

Purchase-money mortgages are the bread and butter in primary mortgage-insurance activity, but refinance loans also played a role in the continuing climb in private MI market share during the fourth quarter of 2017, according to a new Inside Mortgage Finance analysis.


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