The effort by some non-agency MBS investors to create an entity to protect investors took a step forward as a sample deal-agent agreement was circulated late last week in advance of the ABS East conference in Miami. A deal agent would be tasked with protecting the interests of investors in non-agency MBS, including duties of care and loyalty. The leaders of the effort, James Callahan, a principal at Pentalpha Global and Alessandro Pagani, head of securitized assets at Loomis Sayles & Company, said the market should adopt the agreement as the template for new non-agency MBS. However, the sample agreement leaves...
Tom Hutchens, SVP of sales and marketing at Angel Oak, said originations of nonprime non-QMs have predominantly been purchase mortgages. However, refinance activity is starting to increase…
Five years have passed since the Federal Housing Finance Agency filed suit against 18 Wall Street firms and banks for peddling nonprime MBS to Fannie Mae and Freddie Mac in the years leading up to the housing crisis. All of the defendants have settled or lost with one glaring exception: Royal Bank of Scotland. As for when (and if) RBS will settle, that’s a different and complicated matter. The bank is presently owned by the British government, which took control of it during the financial crisis. In other words, any settlement might entail taxpayer money and cause a political controversy in the U.K. And the bill could be...
JPMorgan Chase is set to end another lull in the issuance of jumbo mortgage-backed securities. The $395.40 million JPMorgan Mortgage Trust 2016-3 is scheduled to be issued next week, according to a presale report from Fitch Ratings. The most recently issued jumbo MBS priced in mid-August and was also from Chase. Only two firms with active conduits have issued jumbo MBS this year: Chase and Redwood Trust. Two Harbors Investment and WinWater Home Mortgage issued ...
Originations of interest-only mortgages increased significantly in the second quarter of 2016, particularly at PHH Mortgage, according to a new ranking by Inside Nonconforming Markets. A group of 12 lenders had $12.65 billion in IO originations in the second quarter, up 44.7 percent compared with the previous quarter. A large amount of the increase in volume was driven by PHH, which more than doubled its IO originations in that span. PHH had $6.25 billion ... [Includes one data chart]
The nonprime mortgage-backed security issued last week by Lone Star Funds priced at tighter spreads than the deal the company issued in June, indicating increased demand among investors. The $217.00 million COLT 2016-2 was also larger than the previous $161.40 million deal from Lone Star. According to Deutsche Bank Securities, spreads of A-1 tranche and A-2 tranche in COLT 2016-2 were respectively priced at 130 basis points and 175 bps, significantly tighter than ...
An investor-led group of participants in the non-agency mortgage-backed security market released a sample deal-agent agreement last week. The investors said the agreement can help reform non-agency MBS practices and increase issuance. Some investors have balked at buying new non-agency MBS until significant reforms are put in place. As early as July 2008, the American Securitization Forum started work on reforming the market and the Structured Finance Industry Group ...
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