Investors in some prime non-agency MBS are taking losses even though loans in the deals are performing well. The red ink is tied to variable servicing fees and high prepayment rates.
Provident Funding is set to issue a non-agency MBS with standard mortgages eligible for sale to the GSEs. An affiliate of Cerberus is also planning a relatively large deal backed by seasoned mortgages.
The market for MBS with non-qualified mortgages is growing by leaps and bounds. However, there is some skepticism about whether there’s enough demand to support $50 billion in annual issuance.
Kevin Keyes, CEO of Annaly Capital Management since September 2015, abruptly parted ways with his employer without much in the way of explanation. The REIT’s shares continue to trade in a tight price range.
Deal volumes in the non-agency MBS market are elevated as issuers work to meet investor demand. Angel Oak, Chase and Invictus are bringing large deals and more issuance is in the pipeline.
In another example of a REIT branching out, Starwood Property Trust has agreed to purchase a licensed lender/servicer. For now, all parties are mum but more deals may be afoot.
Compliance experts are warning warehouse lenders holding eNotes of the risks they face from certain ambiguities between the Uniform Commercial Code and the Uniform Electronic Transactions Act.
Ocwen Financial may have some MBS-related exposure, according to a new regulatory filing. Also, FHFA Director Mark Calabria opens up some more about the business practices of Fannie and Freddie.
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