Credit Suisse issued its latest non-agency jumbo mortgage-backed security at the end of August, about one month after the previous issuance from the investment bank. Mortgages in the latest security, the $399.77 million CSMC Trust 2013-7, were seasoned an average of three months, according to DBRS. The mortgages have a weighted average interest rate of 3.875 percent. All of the mortgages have 30-year fixed-rate terms, and one has a 10-year interest-only feature. The deal received AAA ratings with ...

Correspondent lenders whose mortgages end up in non-agency jumbo mortgage-backed securities could be required by issuers to retain a portion of the risk from the issuance, according to the net risk-retention rule proposed last week by federal regulators. As with the risk-retention rule originally proposed in 2011, the new proposal allows security sponsors to require certain originators to retain risk on securitized assets. Issuers of non-agency MBS subject to risk-retention requirements would be ...

Fannie Mae is starting to market a risk-sharing transaction to investors. A Fannie spokesman said the government-sponsored enterprise is working with the Federal Housing Finance Agency to meet the goals set by the conservator of the GSEs. Mark Lefanowicz will be the CEO of Fenway Summer’s mortgage venture, according to an announcement this week by Raj Date, the founder of the firm. Fenway Summer plans to originate non-qualified mortgages and Lefanowicz has previously worked at ... [Includes five briefs]

Federal regulators this week re-proposed risk-retention requirements with an option to align the definition of qualified residential mortgages with the definition of qualified mortgages. The regulators said the alignment will help increase mortgage availability and reduce compliance costs. “The agencies are concerned about the prospect of imposing further constraints on mortgage credit availability at this time, especially as such constraints might disproportionately affect groups that have ...

Federal regulators next week will propose a new version of the controversial rule setting risk-retention requirements for issuers of non-agency mortgage securities that are not backed by qualified residential mortgages. Among other significant changes, the new proposed rule will likely eliminate premium capture cash reserve account requirements, according to the American Securitization Forum. The Federal Deposit Insurance Corp. has a meeting scheduled for Aug. 28 to discuss ...

Two Harbors Investment is set to issue its first non-agency jumbo mortgage-backed security. The real estate investment trust is working on building its jumbo conduit operations, but in the meantime, Two Harbors plans to securitize mortgages it purchased from Bank of America. Two Harbors’ $434.17 million Agate Bay Mortgage Trust 2013-1 is set to receive AAA ratings with credit enhancement of 7.70 percent for the top-rated tranche. Mortgages to be included in the security have seasoned for ...

Fitch Ratings updated its loss model criteria for non-agency jumbo mortgage-backed securities this month, including new default estimates that vary by origination channel. Other rating services take the origination channel into account when rating new jumbo MBS, but not necessarily to the extent that Fitch has taken. “Fitch has determined that loans originated through a direct retail channel have a lower default risk than those originated through a broker, correspondent or wholesale channel,” the rating ...

Parties to trustee lawsuits challenging a city’s use of eminent domain to deal with foreclosures are gearing up for a face-off at an injunction hearing Sept. 13 in federal district court in San Francisco. The city of Richmond, CA, the defendant in the lawsuit, has suffered setbacks in the last few days and has yet to make good on its threat to initiate eminent domain proceedings after investor trustees rejected its offer to purchase distressed mortgages for restructuring. Wells Fargo and Deutsche Bank, acting as trustees for a group of ...

As of the midway point in 2013, Fannie Mae and Freddie Mac were only slightly ahead of the pace they will need to maintain this year to reach portfolio-shrinkage targets set by their regulators, according to a new Inside MBS & ABS analysis. Under the revised terms of their bailout agreements, the two government-sponsored enterprises are required to reduce their retained portfolios by 15.0 percent by the end of this year. Through the first six months of 2013, the GSEs had shrunk their mortgage portfolios by 8.7 percent. But the Federal Housing Finance Agency has also directed...[Includes one data chart]

Standard & Poor’s is defending its status as the top rating service in the non-agency MBS market through the first half of 2013, having put its stamp on 39.0 percent of the growing market, according to a new Inside MBS & ABS ranking. S&P has been the top non-agency MBS rating agency over the years but saw DBRS capture the title in 2012 with 54.8 percent of rated transactions. The non-agency ratings business has become significantly more fragmented than it was before the financial collapse, when S&P often rated more than 90.0 percent of the deals that came to market. Both Fitch and Kroll Ratings are...[Includes two data charts]