MBS, ABS Issuance

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

June 15, 2018 - Inside FHA/VA Lending

HECM Originations Rise in 1Q18, Draw Cut Slows HMBS Issuance

Reverse mortgage lenders started out strong in the first three month of 2018 with a 19.2 percent increase in Home Equity Conversion Mortgage production from the previous period. HECM endorsements totaled $5.4 billion in the first quarter, with purchase reverse loans accounting for the bulk of originations, 81.9 percent. First quarter production was up 18.5 percent from the same period last year. Meanwhile, HECM mortgage-backed securities issuance totaled $2.97 billion for the quarter, down from $3.25 billion in the prior quarter, Ginnie Mae data showed. The top five HECM originators in sequential order – American Advisors Group, Reverse Mortgage Funding, One Reverse Mortgage, Liberty Home Equity Solutions, and Synergy One Lending – accounted for $1.66 billion, or 30.8 percent, of total production during the first quarter. American Advisors maintained its top ranking with $841.4 million of HECM loans, which ... [Charts]


June 15, 2018 - Inside FHA/VA Lending

Ginnie Announces New Metric for Monitoring Issuer Performance

Ginnie Mae has added a new metric to make it easier for approved issuers to track the prepayment rates of single-family loans underlying they have delivered into mortgage-backed securities. The new prepayment metric would enhance Ginnie’s Issuer Operational Performance Profile (IOPP) tool, which was launched in 2015 to help issuers measure their performance against the agency’s standards. The new tool is the latest move by Ginnie to ensure the integrity and market predictability of Ginnie MBS. The prepayment tool will be available to lenders beginning June 25. The announcement follows an agency administrative action last week against three VA lenders that were penalized for cherry picking and refinancing unseasoned VA loans not to benefit borrowers but to charge them higher fees. The lenders – Freedom Mortgage, SunWest Mortgage Co. and NewDay USA – were among nine issuers that ...


June 15, 2018 - Inside MBS & ABS

Issuers of ABS with Loans from Marketplace Lenders Boosting Credit Quality after Poor Performance

ABS issuers are boosting the quality of marketplace loans in new deals due to rising delinquency rates, but not enough to convince Fitch Ratings that such issuance deserves AAA ratings.


June 15, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: June 15, 2018

A full page of issuance data and MBS market indicators.


June 8, 2018 - Inside The GSEs

MBS Business Up Modestly in May But Little Change in Credit Box

A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]


June 8, 2018 - Inside MBS & ABS

Kroll, Morningstar Plot Growth with Criteria for PACE ABS, Single-Asset/Single-Borrower Commercial MBS

Kroll Bond Rating Agency and Morningstar Credit Ratings recently expanded the types of products they will assess with new criteria for Property Assessed Clean Energy ABS and single-asset/single-borrower commercial MBS, respectively.


June 8, 2018 - Inside MBS & ABS

Agency 1-Family MBS Production Up Again in May as Purchase-Mortgage Sector Continues to Gain Ground

The agency single-family MBS market did what it was expected to do in May, generating a modest gain in production spurred on by vigor in the purchase-mortgage sector. [Includes two data charts.]


June 8, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: June 8, 2018

A full page of issuance data and MBS market indicators.


June 1, 2018 - Inside FHA/VA Lending

California, Florida, Texas Lead in Deliveries to Securitization Pools

California continued to lead all states in FHA and VA mortgage securitization in the first three months of 2018. The Golden State accounted for 15.3 percent of the $50.6 billion of FHA loans delivered into Ginnie Mae mortgage-backed securities in the first quarter. FHA loans comprised 18.2 percent of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae, and 34.6 percent of agency-securitized loans with primary mortgage insurance. About 66.6 percent of FHA loans securitized during the period were for purchase mortgages while refinance loans accounted for 27.5 percent. The average loan-to-value ratio of FHA loans in Ginnie pools was 93.0 percent. The average credit score of 668.2 reflected FHA’s traditional base of lower-income and first-time homebuyers, with an average debt-to-income ratio of 42.4 percent. The other states among the top five in terms of FHA deliveries into Ginnie pools were ... [Chart]


June 1, 2018 - Inside FHA/VA Lending

Government Agencies Plan Big Technology Investment

Officials at the government’s mortgage programs said that major investments in technology will make their programs more efficient and pay for themselves, during a panel session at the Mortgage Bankers Association secondary market conference last week in New York. Michelle Corridon, deputy director in the single-family housing guaranteed loan division of the U.S. Department of Agriculture, said her program’s focus now is on infrastructure and innovation. The USDA is instituting a technology fee on every closed loan starting in October, she said. The enhanced online system will include new screens for housing, which now shares a landing page with other rural programs. When it’s complete, the new system will handle the process from guaranty commitment through loan delivery. In another efficiency move, rural housing is “rolling up” processing chores to fewer offices so it doesn’t have ...


June 1, 2018 - Inside FHA/VA Lending

Regulatory Relief Law Unexpectedly Disrupts Ginnie Mae MBS Market

Ginnie Mae this week warned that VA refinance loans, particularly Interest Rate Reduction Refinance Loans, may not be included in any new pool or loan package if they do not comply with the newly enacted law protecting VA borrowers from predatory lending. The agency announced new pooling guidance pursuant to the loan-seasoning provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act, which President Trump signed into law last week (See details of the new law below ). The changes affect issuances of Ginnie mortgage-backed securities on or after June 1, 2018, but do not affect MBS issued before that date, according to the guidance. However, lenders seeking a guarantee after June 1 may have to recalibrate their loan-origination platforms to exclude refis that do not meet the new law’s seasoning requirements, said the Structured Finance Industry Group. The ...


May 25, 2018 - Inside Mortgage Trends

Wide Gap in Credit Quality Among Agencies

Credit characteristics continue to vary greatly between the two government-sponsored enterprises in the conventional market and Ginnie Mae. During the first quarter, the average credit score at Fannie Mae was 741.15, slightly below the average 744.73 at Freddie Mac. But the average score for Ginnie business was just 686.91. Purchase mortgages typically have higher credit scores – along with higher debt-to-income ratios – than refinance loans ... [Includes two data charts]


May 25, 2018 - Inside MBS & ABS

Booming CLO Market Poised to Experience Price Volatility; Investors Push Back Against Provisions

The collateralized loan obligation market is heading for some volatility, according to industry analysts. Issuance in the sector has been strong recently, but investors are preparing for short-term losses and fighting against certain provisions in deals.


May 25, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: May 25, 2018

A full page of issuance data and MBS market indicators.


May 18, 2018 - Inside FHA/VA Lending

Bright Nominated to Head GNMA, Montgomery Nomination on Hold

President Trump this week announced Michael Bright as his choice to lead Ginnie Mae, an agency under the Department of Housing and Urban Development, even as Senate Democrats continued to delay vote on his nominee for FHA commissioner. Bright is currently Ginnie Mae’s executive vice president and chief operating officer, though he has been serving as acting president since Theodore Tozer stepped down on Jan. 20, 2017. Tozer served as Ginnie president under the Obama administration for nearly seven years. Bright joined Ginnie on July 11, 2017. Previously, he served as director for financial markets at the Milken Institute and as senior vice president of BlackRock/PennyMac. During his time with Milken, Bright co-authored a paper with Ed DeMarco, former acting director of the Federal Housing Finance Agency and currently president of the Financial Services Roundtable, which proposed to ...


May 18, 2018 - Inside MBS & ABS

Strong Demand from Investors for Prime Non-Agency MBS Boosts Issuance Volume

The volume of prime non-agency MBS issuance is on the rise as investor demand for the product increases. Pricing in the non-agency MBS market for jumbos is rivaling execution levels for holding the loans in portfolio, and some issuers are seeing better returns by placing loans in non-agency MBS instead of delivering them to the government-sponsored enterprises.


May 18, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: May 18, 2018

A full page of issuance data and MBS market indicators.


May 11, 2018 - Inside MBS & ABS

Nonbanks Gearing Up to Issue Non-Agency MBS Backed by Non-QMs as Investor Demand Deepens

A handful of nonbanks are preparing to enter the non-agency MBS market as issuers of deals backed by non-qualified mortgages. Investor demand for the products remains strong, prompting interest from new entrants.


May 11, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: May 11, 2018

A full page of issuance data and MBS market indicators.


May 4, 2018 - Inside FHA/VA Lending

Ginnie Reinstates Nations Lending Following Talks on Loan Churning

An approved issuer suspended last month due to alleged VA loan churning activities is back in Ginnie Mae’s multi-issuer mortgage-backed securities program. Nations Lending, ranked 97th in Inside FHA/VA Lending’s top 100 VA lenders, was reinstated after reaching a confidential agreement with Ginnie Mae, according to a source familiar with the case. The Ohio-based lender has been “fully reinstated and [again] able to use all of Ginnie Mae’s programs that are available for lenders in good faith,” said the source, who asked not to be identified. The source declined to provide details of the agreement, maintaining Nations has been very transparent and was “ahead of the curve” in terms of dealing with the churning problem. “Nations began addressing the issue even before Ginnie took action,” he said. Ginnie neither confirmed nor commented on the report. “The evidence will show what is happening in the ...


May 4, 2018 - Inside FHA/VA Lending

Risk Factors Creep Higher in FHA And VA Loans in Early 2018

With overall production levels falling, there was a modest increase in several risk vectors of FHA and VA loans pooled in Ginnie Mae mortgage-backed securities during the first quarter of 2018.A new Inside FHA/VA Lending analysis shows the average credit score for FHA loans in Ginnie MBS issued during the first quarter was 671.1, the lowest level since Ginnie began reporting loan-level data on its securities. That was down from 673.2 in the fourth quarter and 679.2 a year ago. Part of the slide in FHA credit scores likely reflects the increased share of purchase mortgages, which typically have lower scores than refinance loans. The same thing happened in the VA market, where average credit scores fell 1.1 points to 707.8 in the first quarter. A year ago, the average VA score was 710.2. Debt-to-income ratios also drifted higher, suggesting more risk of default. Among FHA loans, the average DTI rose to ... [Charts]


May 4, 2018 - Inside MBS & ABS

GSEs in Preparation Mode This Week To Issue First REMIC CRTs in 2019

Freddie Mac plans to issue its first credit-risk transfer deal as a trust execution this month in preparation for the new Real Estate Mortgage Investment Conduit structure, according to Michael Reynolds, vice president of credit- risk transfers.


May 4, 2018 - Inside MBS & ABS

Issuance of ABS Backed by Life-Contingent Structured Settlements Expected to Increase

A number of issuers are exploring bringing ABS backed by life-contingent structured settlements, according to DBRS. Interest in the sector increased following a $59.9 million deal DRB Capital issued near the end of 2017 backed by annuities and life-contingent structured settlement receivables.


May 4, 2018 - Inside MBS & ABS

Agency Single-Family MBS Market Gets Spring Mojo As Freddie and Ginnie Post Big Monthly Gains in April

The agency single-family MBS market stepped into the spring homebuying season with a solid increase in production, though still coming up slightly short of last year’s activity. [Includes two data charts.]


May 4, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: May 4, 2018

A full page of issuance data and MBS market indicators.


Poll

On average, how much of a commission does your shop pay loan officers per loan they originate ?

25 to 50 basis points.

18%

51 to 100 basis points.

42%

101 to 150 basis points.

15%

North of 151 basis points. (We expect a lot.)

13%

We pay salary, not commission.

13%