MBS, ABS Issuance

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

November 8, 2018 - Inside MBS & ABS

Single-Security Transition is on Schedule, But Some Market Participants May Still Prefer One GSE Over the Other

Fannie Mae and Freddie Mac officials are confident that the single-security will launch successfully in the to-be-announced market next June, although some market participants at last week’s Residential Mortgage Finance Symposium in New York still have some jitters.


November 8, 2018 - Inside MBS & ABS

Agency Single-Family MBS Production Softened in October as Purchase Market Continued to Deflate

New issuance of single-family MBS by Fannie Mae, Freddie Mac and Ginnie Mae took a predictable downward turn in October as seasonal factors weighed on the U.S. housing market and refinance activity continued to sputter. (Includes two data charts.)


November 8, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: November 9, 2018

A full page of issuance data and MBS market indicators.


November 2, 2018 - Inside FHA/VA Lending

GNMA Sees Growing Need for Financing of Nonbank MSR

Ginnie Mae officials would welcome a return of commercial banks to the program, but they are not planning on it. Instead, the agency is looking the other way: at expanding financing options for nonbank portfolios of mortgage servicing rights. The current version of Ginnie’s acknowledgement agreement has been successful, enabling nonbank servicers to arrange MSR financing for virtually their entire portfolios, said Michael Drayne, a senior vice president at Ginnie, during the Residential Mortgage Finance Symposium sponsored by the Structured Finance Industry Group this week in New York. Although a number of banks are financing nonbank servicing portfolios, many are still not participating, he said. Karen Gelernt, a partner at Alston & Bird, noted that many banks continue to have anxiety about what will happen if a servicer defaults on its Ginnie requirements. Speaking as moderator on a panel with ...


November 1, 2018 - Inside MBS & ABS

Large Investor Preparing Clients for UMBS, Recommends Combining Mortgage Concentration to Avoid Challenges

One large fixed income investor is working with clients now to make sure they’re prepared to invest in the new single security when it rolls out next summer. Western Asset Management is advising investors to consider aggregating their mortgage concentration and exposure limits for the uniform MBS that Fannie Mae and Freddie Mac will issue in the to-be-announced market.


November 1, 2018 - Inside MBS & ABS

Rated MBS Backed by Fix-And-Flip Bridge Loans Likely, Morningstar Will be Conservative, Initially

Originations of fix-and-flip bridge loans have increased significantly in recent years and the collateral could soon be included in MBS with credit ratings. A handful of unrated deals backed by the loans have been issued with limited notice.


November 1, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: November 2, 2018

A full page of issuance data and MBS market indicators.


October 26, 2018 - Inside MBS & ABS

Investors Looking for More Issuance of TruPS CDOs from Smaller Banks, New Issuance Differs from Pre-Crisis

Issuance of collateralized debt obligations holding trust preferred securities has resumed in recent years after performance issues related to the financial crisis. Investors report strong demand for TruPS CDOs and suggest that banks should issue more of the deals.


October 26, 2018 - Inside MBS & ABS

Uniform MBS on Track for Launch in June 2019, Trades of Future TBA Deliveries to Start in March

The new single security is on track for its June 3, 2019, launch and trading is expected to begin around March, according to Fannie Mae and Freddie Mac executives speaking at the Mortgage Bankers Association’s annual conference in Washington last week.


October 26, 2018 - Inside MBS & ABS

Sears’ Bankruptcy Likely Has Minimal Impact on CMBS, Potentially Positive in the Long Run

The bankruptcy filing by Sears will likely place additional stress on commercial MBS backed by the retailer, but the effect in most deals could be minimal and, in the long term, even positive for the commercial properties, said rating agencies.


October 26, 2018 - Inside MBS & ABS

Commercial Mortgage Securitization Slowed in Third Quarter, But Gains Posted in Some Sectors

Issuance of new securities backed by commercial mortgages fell 4.9 percent from the second to the third quarter of 2018, according to a new Inside MBS & ABS market analysis. [Includes one data chart.]


October 26, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: October 26, 2018

A full page of issuance data and MBS market indicators.


October 19, 2018 - Inside FHA/VA Lending

CMLA Seeks New Language for Bill Addressing ‘Orphan’ VA IRRRLs

Community mortgage lenders are asking the U.S. Senate to consider with caution before voting on legislative language passed recently by the House of Representatives to address “orphan” VA streamline refinance loans. Specifically, the Community Mortgage Lenders of America asked the Senate to step back and allow some time for substitute language to be presented with input from the industry and the Department of Veterans Affairs. At issue is the wording in H.R. 6737, the Protect Affordable Mortgages for Veterans Act of 2018. The bill fixes a technical issue that prevented VA lenders from pooling certain VA Interest Rate Reduction Refinance Loans in Ginnie Mae mortgage-backed securities pools. Approximately 2,500 VA refi loans were affected by an inconsistency between the loan seasoning guidelines issued by Ginnie in late 2016 and provisions in the ...


October 19, 2018 - Inside FHA/VA Lending

Prepay Speeds Remain a Concern for Ginnie Mae, Overseas Investors

Ginnie Mae has made considerable progress in dealing with rapid prepayments on VA loans but prepayment speeds on Ginnie mortgage-backed securities in general continue to annoy investors. Prepay speeds on Ginnie MBS are now at the lowest since 2014 but it is not enough for agency Executive Vice President Maren Kasper to feel confident as she addressed the annual convention of the Mortgage Bankers Association this week. “Our prepayment issue is not solved,” said Kasper, as she spoke on a panel with representatives of government-lending programs. The agency continues to hear from investors about the problem, she said. Kasper cited two instances where Ginnie officials were summoned to meetings in China and New York to explain the prepayments to irate investors. They threatened to stop purchasing Ginnie bonds, she said. Kasper declined to say how bad the ...


October 19, 2018 - Inside FHA/VA Lending

Ginnie Mae to Require Servicer, Credit Ratings for Largest Issuers

Participants in Ginnie Mae’s single-family mortgage-backed securities program may expect new policy changes, including servicer and credit ratings for the largest issuers, clarification of “appropriate sources of liquidity” and other financial requirements. The changes come as issuer liquidity continues to be a primary concern for Ginnie Mae, particularly with nonbanks now the dominant segment in the single-family MBS program. “We’re working on those policies right now,” said Leslie Meaux Pordzik, Ginnie’s acting senior vice president, Office of Issuer and Portfolio Management, at the Mortgage Bankers Association’s annual convention in Washington, DC, this week. Nonbanks account for nearly two-thirds of Ginnie MBS issuance and approximately 75 percent of FHA and VA lending. Nonbanks serviced a record 61.1 percent of outstanding Ginnie single-family MBS at the end of the ...


October 19, 2018 - Inside FHA/VA Lending

FHA, VA Delinquencies Tip Slightly Higher in 3Q18 GNMA MBS Pools

The amount of single-family Ginnie Mae mortgage servicing rights increased a modest 0.9 percent during the third quarter, according to a new analysis and ranking by Inside FHA/VA Lending. Some $1.858 trillion of Ginnie mortgage-backed securities were outstanding at the end of September, a 6.2 percent gain over the previous 12 months. Loans guaranteed by the VA continued to be the fastest growing segment of the Ginnie market. Volume was up 1.3 percent from the end of June, hitting $630.9 billion, an 11.0 percent increase from the same time last year. The FHA segment remained far bigger: $1.114 trillion at the end of the third quarter. However, its growth rate has been slower: 0.7 percent from June and 3.9 percent compared to September 2017. Loan performance deteriorated slightly in both programs. Some 92.9 percent of FHA loans were current at the end of September, down from ... [Charts]


October 19, 2018 - Inside MBS & ABS

Market for RPL and NPL MBS Changing with Ongoing Housing Recovery, Plenty of RPL Supply Remaining

The characteristics of MBS backed by reperforming and nonperforming loans are evolving as the housing recovery ripens. The supply of NPLs is declining while RPL MBS issuance looks to remain stable in the coming years, according to industry participants.


October 19, 2018 - Inside MBS & ABS

PennyMac Ready to Issue Its First Rated Credit-Risk Transfer Deal on Fannie Loans

PennyMac Mortgage Investor Trust is putting together its first rated credit-risk transfer deal using Fannie Mae’s L Street Securities platform.


October 19, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: October 19, 2018

A full page of issuance data and MBS market indicators.


October 12, 2018 - Inside The GSEs

GSE 1-Family Business Up 10% in 3Q18 as Purchase Market Grows

Seasonal housing-market factors pushed GSE single-family mortgage business higher in the third quarter, according to a new Inside The GSEs analysis of mortgage-backed securities data. Fannie Mae and Freddie Mac issued $213.81 billion of single-family MBS in the third quarter, a 10.4 percent increase from the previous period. The gain came from a 23.4 percent surge in purchase-mortgage business, which offset a 15.5 percent downturn in GSE refi activity. [Includes two data charts.]


October 12, 2018 - Inside MBS & ABS

Non-Agency MBS Issuance Down Sharply in Third Quarter as Nonprime Sector Tops Prime

New production of non-agency MBS in the third quarter couldn’t keep pace with the record level reached in the previous period, but the market remained on track to top last year’s total issuance by the time 2018 ends. [Includes three data charts]


October 12, 2018 - Inside MBS & ABS

MBS and ABS Issuance at a Glance: October 12, 2018

A full page of issuance data and MBS market indicators.


October 11, 2018 - Inside Mortgage Finance

Agency Market Tilts Toward Purchase Lending in 3Q18, Driving More Business to Private MIs

Private mortgage insurers appeared to gain market share in the third quarter of 2018 as purchase-mortgage lending surged in the agency market, according to an exclusive ranking and analysis by Inside Mortgage Finance. [Includes three data charts]


October 5, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Issues Waiver of Property Inspections in Disaster-Stricken California Counties. FHA has issued a waiver of its timing policy for completing property inspections prior to closing or endorsing a loan for FHA insurance. The waiver is in effect in presidentially declared major disaster areas in Lake and Shasta Counties, CA, that were ravaged by wildfires and high winds. FHA believes that the wildfires and high winds have stabilized so as not to cause any further damage to properties, even though FEMA has not declared “all clear” in the affected areas. The waiver allows damage inspections to be completed after Oct. 2, for properties located in the PDMDA. NC Commissioner of Banks Amends State Reverse Mortgage Rules. The North Carolina Commissioner of Banks recently amended its ...


October 5, 2018 - Inside FHA/VA Lending

Senate Still Has Time to Enact VA ‘Orphan’ Loan Bill, Says MBA

The mortgage banking industry is optimistic about Congress enacting legislation that would cure VA orphan loans before the midterm elections. The U.S. Senate still has time to consider H.R. 6737, the Protect Affordable Mortgages for Veterans Act, according to Bill Kilmer, chief lobbyist at the Mortgage Bankers Association. “Most observers think [lawmakers are] going to be around until Oct. 18 or 19, which is when Senate Majority Leader Mitch McConnell said he wants to keep folks around to work on nominations and other measures they need to clear,” Kilmer said. “There is time and, more to the substantive point, the bill passed the House.” H.R. 6737 would provide a technical fix so that certain VA refinance loans would be eligible for pooling in a Ginnie Mae mortgage-backed security. The bill was reported out of committee by a unanimous 49-0 vote, and was approved quickly by the House ...


October 5, 2018 - Inside FHA/VA Lending

Solid Gains in Purchase-Mortgage Business Offset 3Q18 Refi Slump

Ginnie Mae issuance of single-family mortgage-backed securities rode a homebuying wave during the third quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. Ginnie issuers produced $105.63 billion of new MBS backed by forward mortgages during the July-September cycle, a 7.1 percent increase from the second quarter. That brought year-to-date production to $296.88 billion – down 11.3 percent from the first nine months of 2017. Purchase mortgages provided the boost for the Ginnie market. Some $75.69 billion of FHA and VA purchase mortgages were pooled in Ginnie MBS in the third quarter, a sturdy 13.1 percent increase from the previous period. Purchase loans accounted for 75.1 percent of FHA and VA loans securitized in the third quarter, compared to 64.7 percent for all of last year. Although production of these loans has gone up since the first quarter, year-to-date volume ... [Charts]


October 5, 2018 - Inside MBS & ABS

Re-Performing Loans Reenergized by Recovering Housing Market, Issuance on the Rise, Says DBRS

Securitization of re-performing loans has seen a significant uptick since more borrowers moved from nonperforming to re-performing status as a result of modifications and other loss-mitigation techniques, according to an analysis by DBRS.


October 5, 2018 - Inside MBS & ABS

Despite a Dip in New PACE ABS Issuance, Morningstar Is Optimistic About the Sector

Despite the slowdown in the securitization of residential property assessed clean energy assessments, the market is in good condition because of its low credit risk and growing consumer protection, according to Morningstar Credit Ratings.


October 5, 2018 - Inside MBS & ABS

MBS/ABS Issuers Advised to Prepare for the End of LIBOR or Face ‘Unhappy Ending’

Some participants in the MBS and ABS markets aren’t doing enough to prepare for the potential discontinuation of the London Interbank Offered Rate, according to industry analysts.


October 5, 2018 - Inside MBS & ABS

Securitization Market Limped Through Third Quarter With Help from Agency MBS Issuance

New MBS and ABS issuance was up slightly from the second to the third quarter of 2018 only because housing markets produced a modest gain in agency single-family business, according to a new analysis and ranking by Inside MBS & ABS. [Includes three data charts.]


Poll

With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.
Yes, but only incrementally.
We’re pondering a move into non-QM, but haven’t made up our mind.
No, definitely not. We view it has too risky.

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