A rebound in multifamily MBS issuance by Fannie Mae, Freddie Mac and Ginnie Mae pushed total securitization of commercial mortgages up slightly in the second quarter of 2015. A total of $53.96 billion of income-property mortgages were securitized in the second quarter, according to a new Inside MBS & ABS market analysis. That was up a scant 0.6 percent from the first quarter of 2015. All of the gain came...
Fannie Mae and Freddie Mac risk-sharing transactions have gained steam in the first half of 2015 with the GSEs issuing $7.04 billion through the end of June, a 62.9 percent increase over the first half of last year. Since the credit-risk transfer program launched in July 2013, the two government-sponsored enterprises have sold $19.61 billion of CRT bonds to a growing universe of investors. The CRT bonds transferred a portion of the credit risk on some $704.45 billion of single-family MBS. In addition, Fannie and Freddie have purchased...
If the pace continues over the second half of the year – and strong consumer demand for apartments suggests it will – 2015 would become the best year ever in agency multifamily MBS.
With bond prices expected to fall further and interest rates headed north, analysts who cover mortgage-investing real estate investment trusts are sharpening their knives on the sector. The general consensus is that share prices are going nowhere fast and returns are no longer attractive. A new report on mortgage REITs from Keefe, Bruyette & Woods doesn’t mince words: “Sentiment on the mREIT sector remains pretty poor, and we don’t anticipate 2Q15 results to do much to improve that. We’re not expecting a horrible quarter, but we anticipate slight disappointment along more or less all relevant dimensions.” Although many mortgage REITs have yet to report second-quarter earnings, the early expectations are...
Market factors are more favorably disposed toward non-agency MBS in the second half of the year than for agency bonds, according to a mid-year review and outlook from Deutsche Bank. “For the second half of 2015, we are cautiously optimistic for the non-agency MBS market, given the favorable fundamentals and technicals,” said Deutsche Bank analysts, who expect home price appreciation and servicer practices to continue to be the two biggest drivers of the MBS credit. On the technical front, the most important factor that affected legacy RMBS is...
Some industry officials, including Marc Savitt, president of the National Association of Independent Housing Professionals, are worried about the methodology of the project...
Banks with significant portfolio capacity continue to stock up on mortgages because they offer strong returns and can help efforts to cross-sell other products. While most of the mortgages being added to portfolios are jumbos, in some instances banks are retaining conventional mortgages. JPMorgan Chase reported that it added mortgages with a balance of $19.0 billion to its portfolio holdings during the second quarter of 2015. Marianne Lake, chief financial officer at the bank ...