Ever since Taylor Bean & Whitaker went down in flames a few years ago, the market for loans backed by mortgage servicing rights has been dormant with the nations largest banks pulling out of the business and vowing never to return. But now that MSRs are considered a hot investment with nonbanks such as Nationstar Mortgage, Ocwen Financial and Walter Investment Management gobbling up billions of dollars in receivables the past few years and at bargain basement prices banks, Wall Street firms, and other players are eyeing the market for a major comeback. According to servicing advisors and warehouse firms, there are...
GSE MBS issuance increased in January and the most likely explanation may be new, more seller-friendly repurchase policies at Fannie Mae and Freddie Mac.
New issuance of agency single-family MBS jumped 25 percent from December to January, according to a new Inside MBS & ABS ranking and analysis. The most likely explanation for the sudden jump in agency MBS issuance may be that new, more seller-friendly repurchase policies at Fannie Mae and Freddie Mac went into effect for loans sold after Jan. 1, 2013. The revamped policies generally provide that the government-sponsored enterprises will not seek repurchase or indemnification for loans that perform for the first three years after origination. In the case of Home Affordable Refinance Program loans, repurchases will be waived...[Includes one data chart]