A subsidiary of Credit Suisse Group last week issued a non-agency jumbo mortgage-backed security, its third of the year and the first that did not include mortgages from the shuttered MetLife. The loans were acquired on a flow basis by DLJ Mortgage Capital, a Credit Suisse affiliate. CSMC Trust 2012-CIM3 is backed by $329.89 million of jumbo loans originated by 15 lenders, including Quicken Loans (35.2 percent), PHH Mortgage (19.7 percent) and First Savings Mortgage (16.8 percent). The average ...
Redwood Trust could issue a seventh non-agency mortgage-backed security before the end of this year, according to officials at the real estate investment trust, and the company is ramping up to hit a pace of a new MBS every month. In terms of the residential business, generally I would say the stars are aligning, Martin Hughes, CEO of Redwood, said last week during a presentation to investors. He noted increased guaranty fees for the government-sponsored enterprises, a decrease in conforming loan limits ...
Potential violations to a servicing agreement Ocwen Financial signed in 2011 with the New York State Department of Financial Services have stalled Ocwens efforts to close its acquisition of Homeward Residential and servicing from Residential Capital. Benjamin Lawsky, superintendent of the DFS, said he would not approve Ocwens latest acquisitions until a monitor was established to oversee Ocwens compliance with the September 2011 agreement. This week, Ronald Faris, president and CEO of Ocwen ...
Nonprime mortgages and mortgage-backed securities caused a significant portion of the losses suffered by the government-sponsored enterprises since 2008. However, the nonprime assets that the GSEs have held on to have seen lower credit losses and even profits recently due to improving home prices and investor demand for vintage MBS. Fannie Mae and Freddie Mac have allowed their non-prime exposure to run off since 2008, rather than selling the assets. As of the end of the third quarter of 2012 ... [Includes one data chart]
The mortgage banking industry is urging Congress to reject the FHAs call to eliminate the existing knew or should have known standard in the National Housing Act in connection with an agency proposal to extend indemnification authority to all direct-endorsement lenders. Both proposals are part of legislative and administrative measures sought by the FHA to strengthen its capability to manage risk and protect its Mutual Mortgage Insurance Fund. A recent independent actuarial review of the fund found that in FY 2012 the economic value of the FHAs single-family portfolio had dropped to negative $13.5 billion (excluding Home Equity Conversion Mortgage loans) and that ...
FHA endorsements jumped 18.8 percent in October from the previous month and by more than half from a year ago, with mortgagees accounting for 80 percent of production, according to Inside FHA Lendings analysis of FHA data. FHA originations, excluding Home Equity Conversion Mortgage loans, totaled $22.8 billion in October, up from $19.2 billion in September and 56.4 percent more than a year ago. Fixed-rate forward mortgages accounted for nearly all FHA loans produced during the month, with purchase mortgages having a slight edge in the mix over refinances. Top-ranked Wells Fargo outdid other lenders in October with ...
New York Attorney General Eric Schneiderman said he plans to file more lawsuits against non-agency MBS issuers using the Martin Act, which allows platform-wide cases as opposed to cases focused on specific deals. Its not about one deal or five deals or 10 deals, its about the entire course of conduct, he said last week after filing a platform-wide lawsuit against Credit Suisse Securities. The lawsuit was filed as part of the RMBS Working Groups efforts, including a similar lawsuit Schneiderman filed in October against JPMorgan Chase. The actions you have seen...
The Department of Housing and Urban Development warned that an extraordinarily high percentage of loans in claim status can trigger a lender monitoring review to ensure the lenders capacity to meet indemnification requirements. A high loan defect rate may be one of several factors used to target FHA lenders for a special review to determine the amount of risk a lender might pose to the safety and soundness of the FHAs single-family mortgage insurance program, according to Justin Burch, director of the Quality Assurance Division at FHA during a webinar hosted this week by Inside Mortgage Finance. If you are a lender that is...
The conforming mortgage market continued to dominate new loan originations during the third quarter of 2012, accounting for a whopping 85.7 percent of the periods robust $475 billion in new originations, according to a new Inside Mortgage Finance analysis and ranking. The conforming market which includes loans with government insurance and conventional mortgages up to the eligible loan limit for Fannie Mae and Freddie Mac represented 84.5 percent of new originations in 2011. During 2010, the conforming market accounted for a record 90.1 percent of new loan production. The jumbo sector made...[Includes two data charts]
The Department of Housing and Urban Development will raise the annual insurance premium on new FHA originations, reverse the agencys current policy on mortgage insurance premium cancellation and institute other policy changes to improve the health of the FHA insurance fund. The new measures aim to offset significant losses from FHAs legacy loans, which have caused significant stress to the agencys Mutual Mortgage Insurance Fund. Results of a new FHA actuarial audit showed that the stress has plunged the MMI Fund into a deep hole, revealing negative capital of $16.3 billion (negative $13.5 billion excluding Home Equity Conversion Mortgages) on a $1.13 trillion FHA portfolio. The capital reserve ratio fell ...