The downfall of Community Home is intriguing: the servicer closed its Jackson office and had customers send payments to Las Vegas. From there, payments were sent to a location in Costa Rica, according to AP.
The Treasury Department will hold meetings with issuers of non-agency MBS in the coming months to pick their brains on how the government can assist in uncovering "new paths" to increase private investment.
While jumbo mortgage securitization is currently attractive to issuers, industry analysts suggest that volume will remain limited this year due to a number of factors.
Over the past few months, at least $407 million of re-performing residential mortgages have been auctioned off in the secondary market, according to a recent tally from Mountain View Capital Group, Denver. As for how many of these loans will wind up in an MBS, that’s a different matter. DBRS has rated what it calls 15 “seasoned” loan programs since 2009, only four of which it considers to be re-performing. But according to DBRS Managing Director of Structured Finance Quincy Tang, “There’s certainly no shortage of re-performing collateral in the market.” In other words, despite the improvement in the housing market, there are...
Secondary mortgage market participants generally support the Consumer Financial Protection Bureau’s proposed “right to cure” a mortgage that inadvertently breaches the qualified mortgage 3 percent points-and-fees cap – but they want to see it made more assignee-friendly. Earlier this year, the CFPB proposed allowing a limited cure for a points-and-fee violation if the creditor in good faith intended to originate the loan as a QM under the bureau’s ability-to-repay rule and the loan otherwise meets the requirements of a QM. A refund of the overage would have to be paid to the consumer and the party seeking to cure the violation (either creditor or assignee) would have to follow certain policies and procedures for post-consummation review of loans. In its comment letter to the CFPB, Fannie Mae suggested...
About $179.6 billion of newly-originated home mortgages were securitized during the first quarter of 2014, resulting in a securitization rate of 76.4 percent, according to a new Inside MBS & ABS market analysis. The securitization rate was down slightly from 78.5 percent for all of last year and 78.8 percent during the fourth quarter. Historically, the rate peaked in 2009, when 84.4 percent of new originations were securitized. In the conventional conforming market, Fannie Mae and Freddie Mac securitization volume ($126.4 billion) actually exceeded...[Includes one data chart]
Even though the risk-sharing targets set for Fannie Mae and Freddie Mac have been all but met this year, expect the two government-sponsored enterprises to come to market with risk-sharing transactions at least once a quarter, with the likely result of both firms exceeding the 2014 target “by at least” $20 billion, predicted an analysis by Wells Fargo Securities. The FHFA’s 2014 Conservatorship Scorecard directs the GSEs to reduce taxpayers’ risks by increasing the role of private capital in the market via several strategies, including tripling the credit risk transfer goals to $90 billion in 2014 from $30 billion in 2013. Year-to-date, Fannie Mae’s Connecticut Avenue Securities program has already achieved...