Moodys Investors Service this week warned of increasing complexity in the structures of new jumbo MBS. However, losses on the deals will only occur in low probability scenarios and issuers have yet to bring back all of the non-agency MBS features seen before the financial crisis. Moodys said complex cash-flow structures in new jumbo MBS can increase risks on senior bonds in the event of high mortgage losses. The features include super-senior support bonds, exchangeable securities, principal-only bonds, and pool interest-only bonds. These securities pose...
Its no secret that Nationstar has been an active bidder on MSRs the past two years, taking down some huge packages of product, including receivables from Bank of America.
Rising prices for mortgage servicing rights in the second quarter of 2013 helped lure sellers to a market that continues to see a decline in available product and improving fundamentals. The Federal Reserve this week reported that the long, steady decline in home mortgage debt outstanding a streak that has now run six and a half years continued through the midway point in 2013. As of the end of June, home mortgage debt outstanding was down to $9.833 trillion, a 0.4 percent drop from March and a hefty 12.9 percent decline from the all-time high ($11.287 trillion) set back in March 2008. A new Inside Mortgage Finance analysis reveals...[Includes two data charts]
The MBS lawsuits target Barclays, Credit Suisse, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Residential Funding Securities, Royal Bank of Scotland, UBS and Wachovia.