MBS, ABS Issuance

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

July 21, 2017 - Inside FHA/VA Lending

Around the Industry

Bipartisan Flood Bill Introduced in Senate. The Senate Committee on Banking, Housing and Urban Affairs will soon consider a bipartisan bill introduced this week that would keep the National Flood Insurance Program funded for six more years and create new risk mitigation procedures for communities to follow. Senate Banking Committee Chairman Mike Crapo, R-ID, and ranking Democrat Sherrod Brown, OH, said the bill would serve as a template for consideration by the whole committee. The Senate bill does not include core provisions in the House version, including the development of a private flood insurance market to complement the NFIP. In addition, the bill does not call for cuts in the reimbursement rate for Write-Your-Own flood-insurance carriers that service NFIP policies. However, amendments are likely, according to Crapo and Brown. Meanwhile, the ...


July 21, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


July 21, 2017 - Inside MBS & ABS

After a Lull in Issuance, Strong Demand for New Single-Family Rental Security from Progress

Issuance of single-family rental securitizations has been lagging this year, but a new offering from Progress Residential suggests that demand for deals could be headed northward. In a somewhat uncommon move last week, Progress increased a planned issuance after presale reports on the deal were already published. “The transaction sponsor elected...


July 20, 2017 - Inside Mortgage Finance

Ginnie Continues Leading Growth in Agency Servicing Market, Nonbanks Picking Up the Slack

The supply of single-family mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae grew by 0.5 percent during the second quarter, according to an exclusive analysis and ranking by Inside Mortgage Finance. Total agency MBS outstanding rose to $6.258 trillion at the end of June, which does not include whole loans held in Fannie and Freddie portfolios or government-insured loans repurchased from Ginnie pools. The market was 4.2 percent bigger than it was at the midway point in 2016. Ginnie continues...[Includes two data tables]


July 14, 2017 - Inside The GSEs

UI: Single-Security Efforts Alleviated GSE Pricing Differences

Pricing disparity between the GSEs has almost disappeared since single-security efforts began, according to a new paper by the Urban Institute. The authors called the progress on the initiative an “unheralded success” in a paper released this week. In 2012 and 2013, Freddie’s 3, 3.5, and 4 percent coupons traded at more than a $0.30 discount to Fannie Mae’s. That number narrowed to about $0.15 in 2014 and 2015 and by early 2017 it had largely converged, said the UI. “Interestingly, the pricing disparity has all but disappeared since the single-security effort began,” said Laurie Goodman, Jim Parrott and Bing Bai, authors of the study.


July 14, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


July 14, 2017 - Inside MBS & ABS

ABS Investors May Turn to ‘Moneyball’ Tactics With the Fed Expected to Increase Interest Rates

ABS investors could see strong returns by employing the “Moneyball” strategy pioneered in Major League Baseball by the Oakland Athletics, according to analysts at Wells Fargo Securities. The strategy, detailed in a book and movie, focuses on certain statistics that managers of the Athletics thought were undervalued by other teams. Wells said the theory can be adapted to the ABS market, with an emphasis on deals that can reliably hit “singles” instead of potentially risky investments that aim for home runs. “With interest rates low and ABS spreads reasonably tight, many market participants are...


July 14, 2017 - Inside MBS & ABS

Despite Slump in Prime-Jumbo Space, Non-agency MBS Production Gained Momentum in Second Quarter

The non-agency MBS market is off to what looks like one of its best years in terms of new issuance since the financial crisis, according to a new analysis by Inside MBS & ABS. A total of $15.30 billion of non-agency MBS were issued in the second quarter, representing a gain of 13.4 percent from the first three months of 2017. That brought year-to-date production to $28.80 billion, a 32.0 percent increase over the first half of 2016. As has been the case since 2009, most of the new production has been...[Includes three data tables]


July 7, 2017 - Inside FHA/VA Lending

Around the Industry

Chicago HECM Lender Arraigned on Fraud Charges. Mark Steven Diamond, a mortgage loan originator with offices in Chicago and Calumet City, IL, was arraigned on fraud charges in connection with a $7 million reverse mortgage scheme that targeted elderly homeowners and FHA lenders. According to the Department of Justice, Diamond deceived lenders into making FHA-insured reverse mortgage loans to homeowners who did not apply for a loan or had been beguiled to do so by the smooth-talking suspect. Diamond allegedly pocketed title-company checks intended for the borrowers, with the help of an unindicted co-schemer. Cynthia Wallace, who posed as a representative of the Department of Housing and Urban Development, was indicted along with Diamond. Using at least three aliases, Wallace allegedly collected money from victims for home repairs, which she claimed Diamond would ...


July 7, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rides Rising Home Sales in 2Q17

Ginnie Mae issuers were moderately busier in the second quarter of 2017 than during the first three months of the year, according to a new analysis and ranking by Inside FHA/VA Lending. Issuers produced $112.71 billion of single-family mortgage-backed securities during the second quarter, including MBS backed by FHA home-equity conversion mortgages. It was a 5.5 percent increase from the previous period and brought year-to-date issuance to $219.51 billion, down 0.7 percent from the first half of 2016. The quarterly uptick in total issuance may not sound like much, but contrasts sharply with production at Fannie Mae and Freddie Mac, which dropped 13.1 percent from the first to the second quarter. Ginnie volume was up because it had a deeper vein of purchase-money mortgages than there was in the government-sponsored enterprise market. Purchase loans accounted for 63.4 percent of ... [Charts]


July 7, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


July 7, 2017 - Inside MBS & ABS

Market for ABS Tied to Marine Containers Now on The Rise After Minimal Issuance in 2015 and 2016

Issuance of ABS backed by proceeds from marine container leases has increased significantly this year, with five deals pricing between March and June. The sector was relatively strong in 2013 and 2014, but only two deals were issued in 2015 and only one last year. “With global container trade volumes showing an increase and steel prices up from their lows, prospects for marine shipping container lessors may be brightening following a challenging period,” according to analysts at DBRS. Cash flows for container ABS generally depend...


July 7, 2017 - Inside MBS & ABS

After a Significant Lull, Credit Suisse Returns to Non-Agency MBS Market with a Flurry of Deals

Near the end of the second quarter, Credit Suisse resumed its activity in the non-agency MBS market after a lengthy pause. In May, the investment bank unveiled a $91.18 million deal backed by seasoned FHA loans. That was followed by a $393.97 million issuance backed by seasoned mortgages at the end of June. Credit Suisse marked its return to the jumbo MBS market in June – not as an issuer but as a depositor – lending its shelf registration to American International Group for a $511.98 million MBS. The bank faced...


July 6, 2017 - Inside Mortgage Finance

Many Non-QM Borrowers Look Eligible for GSE Mortgages, Save for One Disqualifying Issue

An analysis of non-qualified mortgages suggests that many of these borrowers have credit qualities strong enough to qualify for a mortgage that could be delivered to the government-sponsored enterprises. However, issues involving credit events and income documentation can disqualify such borrowers from conventional mortgages. According to an analysis by Morningstar Credit Ratings, the weighted-average loan-to-value ratio for securitized non-QMs is 75.2 percent and the average debt-to-income ratio on the loans is 36.6 percent. The rating service noted that QMs (including agency and non-agency mortgages) have an average LTV ratio around 69.0 percent and an average DTI ratio around 32.3 percent. In addition to showing that certain characteristics don’t differ much between QM borrowers and non-QM borrowers, the analysis suggests...


July 6, 2017 - Inside Mortgage Finance

Fannie/Freddie Business Volume Down Sharply In 2Q17 as Refinance Market Hit the Skids

Fannie Mae and Freddie Mac saw a 13.1 percent drop in new business in their flagship single-family mortgage-backed securities programs during the second quarter, according to an exclusive analysis and ranking by Inside Mortgage Finance. The two government-sponsored enterprises issued a combined $189.70 billion of single-family MBS during the April-June cycle. It was their weakest quarter since early last year, although year-to-date volume was still up 4.3 percent from the first half of 2016. As widely predicted, the decline was...[Includes three data tables]


June 30, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


June 23, 2017 - Inside FHA/VA Lending

VA Jumbo Securitization Declines, FHA Jumbo Production also Down

Wells Fargo fell a notch as PennyMac raced to the top to become the leading VA jumbo securitizer for the first quarter of 2017 – a period in which VA jumbo loan securitization took a sharp nose dive. The volume of VA jumbo loans securitized during the first three months plunged 36.8 percent, compared to the meager 2.0 percent decline seen in the fourth quarter. The drop reflected a 32.9 percent drop in jumbo mortgage production during the first quarter, along with similar large drops in virtually every product segment in the mortgage market, according to an analysis by Inside FHA/VA Lending affiliate Inside Mortgage Finance. The agency jumbo market was down 39.1 percent from the fourth quarter despite the bump up in high-cost loan limits to $636,150, an increase of $10,650 that became effective in January. All components of the agency jumbo market took big hits in the first quarter, including ... [ Charts ]


June 23, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


June 23, 2017 - Inside MBS & ABS

Fintech Darling SoFi Files for a Bank Charter, Deposit Insurance and Has an IPO on the Drawing Board

Marketplace lender Social Finance – a mortgage originator with a track record in securitizing consumer and student loans – has filed for a state bank charter in Utah and is also pondering selling stock to the public. For now, the privately held technology-centric firm isn’t saying much about its plans, including the initial public offering. One source familiar with the company’s mortgage operation said SoFi recently hired one executive away from a larger player by dangling the IPO and stock options. To date, there has been...


June 23, 2017 - Inside MBS & ABS

Ginnie Mae is Now Number Two in MBS Outstanding, But Nonbanks Aren’t Exactly Lining Up to Get Approved

If you’re a mortgage banker hoping to issue Ginnie Mae securities, now may be a good time to apply: the list of pending applications is extremely short, as are the wait times. According to Gregory Keith, senior vice president and chief risk officer for the agency, there are now just nine pending applications, with two of those being circulated for final approval. Moreover, according to figures provided to Inside MBS & ABS, final approvals granted to banks and nonbanks have been...


June 23, 2017 - Inside MBS & ABS

Securitization Rates Started Strong in 2017, But Secondary Lagged Mortgage Originations Slump

Securitization rates appeared to rebound strongly in the first quarter of 2017, with an estimated 79.5 percent of primary-market mortgage originations finding their way into a variety of MBS, according to a new Inside MBS & ABS analysis. That’s up from a 69.1 percent securitization rate for all of 2016 and, if it keeps up for the rest of 2017, it would be the highest mark since 2013. In the fourth quarter of 2016, the rate was 72.7 percent. Both new MBS production and primary-market originations were...[Includes one data table]


June 16, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


June 16, 2017 - Inside MBS & ABS

Treasury Seeks Significant Regulatory Changes to Spur Non-Agency MBS Market, Boost ABS Issuance

The Trump administration wants to pare back regulations that inhibit the non-agency MBS and ABS market and tilt current securitization economics that favor the government-sponsored enterprises over private issuers. “In order to revitalize a responsible [private-label securities] market, it is important to improve incentives for issuers through reasonable reductions in costs and regulatory burdens,” the Treasury Department said in a new report released this week. In particular, it aimed at adjusting relative economics for the government-sponsored enterprises and FHA/VA mortgage programs. On the regulatory side, Treasury recommends...


June 9, 2017 - Inside FHA/VA Lending

USDA Securitization Fell in 1Q17, Top-Ranked Chase Drops to Fifth

Ginnie Mae securitization of single-family mortgage securities backed by USDA loans fell in the first quarter of 2017. One-time leader Chase Home Finance was in fifth place after a whopping 31.6 percent decline in USDA activity and an even larger 87.4 percent drop year over year. A total of $4.6 billion in USDA loans were securitized in Ginnie Mae pools during the first three months of 2017, down 9.5 percent from the previous quarter. On the other hand, year-over-year securitization of USDA home loans rose 17.6 percent. Top-ranked Freedom Mortgage and 7th-ranked Ditech Financial each reported a tenfold increase in USDA volume year over year. Freedom Mortgage led the market with $887.3 million despite a 20.4 percent decline from the prior quarter Second-ranked PennyMac closed the quarter with $661.6 million of securitized USDA loans, while Wells Fargo reported a 9.3 percent decrease to ... [Chart]


June 9, 2017 - Inside FHA/VA Lending

Ginnie Adds More Punch to IOPP to Improve Comparability, Monitoring

Ginnie is adding more muscle to a performance-measurement tool to help improve mortgage-backed securities issuers’ ability to compare their performance with other issuers in terms of meeting agency requirements. Other enhancements to the Issuer Operation Performance Profile (IOPP) would increase scoring transparency and make performance reports clearer and easier to understand, the agency said. Introduced in 2015, the IOPP is essentially a performance scorecard to gauge effectiveness as a Ginnie issuer. Issuers are scored based on a pre-determined set of metrics for performance and for default. Each metric is weighted in the issuer’s overall performance score and – for single-family issuers only – default management score. If an issuer fails in one metric, it may be required to develop a remediation plan to improve performance. The number, type and weight of the metrics may be ...


June 9, 2017 - Inside Nonconforming Markets

News Briefs

Ocwen Financial recently filed a lawsuit against Fidelity Information Services, which completed a two-year review of Ocwen as part of an order by the California Department of Business Oversight. Ocwen alleged that FIS submitted false, fraudulent and improper invoices for the review, including invoices from strip clubs and casinos. FIS has disputed the allegations. The Structured Finance Industry Group is...


June 9, 2017 - Inside Nonconforming Markets

AIG Close to Issuing Jumbo MBS

American International Group’s jumbo conduit has purchased a significant volume of mortgages in the past year and has plans to issue non-agency mortgage-backed securities. As of April, AIG Investments had purchased prime jumbo mortgages with an original balance of approximately $4.80 billion, according to Fitch Ratings. AIG launched its residential mortgage lending division in 2013 and has ramped up acquisition activity since then. Fitch recently assessed...


June 9, 2017 - Inside Nonconforming Markets

Deephaven Provides More Non-QM Detail

Deephaven Mortgage LLC soon will issue its second securitization of nonprime mortgages of this year, a $250.1 million deal backed by a variety of loans that fall outside of the legal safe harbor for qualified-mortgage status. Presale reports from S&P Global and Kroll Bond Rating Agency indicate that 45.6 percent of the loans were acquired from Angel Oak Mortgage Solutions, with the rest coming from Deephaven. Shellpoint Mortgage Servicing will service all the loans. The mortgages were originated...


June 9, 2017 - Inside Nonconforming Markets

Redwood Preps New Jumbo MBS

Redwood Trust is set to end a slight lull in its issuance of jumbo mortgage-backed securities with a new $349.46 million deal. The firm issued one jumbo MBS per month in the first three months of the year while planned Sequoia Mortgage Trust 2017-4 is set to close at the end of this month, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. At a recent investor conference, Marty Hughes, Redwood’s CEO, said...


June 9, 2017 - Inside MBS & ABS

MBS & ABS Issuance at a Glance

One page of issuance data.


June 9, 2017 - Inside MBS & ABS

Non-Agency MBS Market Gets Busy With New Deals From Redwood, Deephaven, Mill City, MFA and New Residential

June is shaping up to be a strong month for the non-agency MBS market with a handful of new deals that reflect the character of the sector: a reliance on scratch-and-dent transactions mixed with an emerging nonprime component and opportunistic prime jumbo issuance. Five non-agency MBS totaling $1.90 billion hit the market in the first week of June, with three S&D deals accounting for $1.30 billion of the total. The biggest of these was...


June 9, 2017 - Inside MBS & ABS

Refinance Market Continues to Fizzle, Dimming Some Of the Glow From Surging Purchase-Mortgage Business

Agency issuance of single-family MBS posted a solid, if unspectacular, gain from April to May, according to a new Inside MBS & ABS ranking and analysis. Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $98.52 billion of single-family MBS last month, up 4.1 percent from their April volume. Monthly production in 2017 still hasn’t caught up to the $134.21 billion issued in January but, on a year-to-date basis, it’s running about 5.3 percent ahead of the pace set in the first five months of last year. The story in 2017 has been...[Includes two data tables]


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