Bank and thrift holdings of home-equity loans declined by 2.5 percent in the third quarter of 2012 compared with the previous quarter, according to the Inside Mortgage Finance Bank Mortgage Database. A significant portion of the holdings remain in a negative equity position, though overall homeowner equity increased in the past year. Banks and thrifts reported $1.11 trillion in total HEL business at the end of the third quarter of 2012, including home-equity lines of credit and closed-end second mortgages held in portfolio, and unused HELOC commitments. The $103.36 billion in CES holdings in the third quarter of 2012 was down 5.8 percent from the previous quarter. Cristian de Ritis, a senior director of consumer credit economics at Moodys Analytics, said...[Includes one data chart]
Servicers handling portfolio loans and non-agency mortgages continue to increase their use of principal reduction loan modifications, according to the Office of the Comptroller of the Currency. Some 23,335 principal reduction mods were completed in the third quarter, up from 11,178 in the third quarter of 2011 and from 14,944 in the second quarter of 2012. The mods accounted...[Includes four briefs]
A federal appeals court in Washington, DC, has overturned a lower courts dismissal of a lawsuit accusing the Department of Housing and Urban Development of denying protection for surviving spouses of deceased principal borrowers of reverse mortgages against ejection due to foreclosure. The case, Robert Bennett, et al. v. Shaun Donovan, revealed an apparent inconsistency between HUD regulations and the federal statute that created the FHAs Home Equity Conversion Mortgage Program. This inconsistency was at the root of the district courts previous decision to dismiss plaintiffs claim for lack of standing, which the ...
Residential Capital, a former subsidiary of Ally and currently in Chapter 11 bankruptcy, has asked the court for permission to sell an estimated $130 million in FHA-insured mortgage loans. ResCap made the request in a recent filing with the U.S. Bankruptcy Court in Manhattan, which monitors and approves all of the beleaguered companys activities and requests during bankruptcy. According to the company, its unsecured creditors have signed off on the prospective sale of the FHA loans although the court would still have to approve the request during a scheduled hearing on Jan. 16. ResCap sought bankruptcy protection on ...
The agency residential MBS market expanded for the third consecutive quarter during the three months ending in September, according to a new Inside MBS & ABS analysis. A total of $5.39 trillion of single-family MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae were outstanding as of the end of the third quarter of 2012. That was up by a scant 0.2 percent from the previous period, although it was still 0.4 percent below the level at the same time in 2011. Both Ginnie (2.1 percent) and Fannie (0.6 percent) posted...[Includes two data charts]
Merrill Lynch over the past few months has been in the market actively buying jumbo mortgages and is also looking for an executive to manage its correspondent purchases, secondary market officials told Inside MBS & ABS. These officials, who spoke under the condition their names not be used, said they anticipate that Merrill, a Bank of America company, is gathering product for an eventual jumbo security. A spokesman for Merrill declined to discuss the matter, saying, We dont comment on our plans. Shellpoint Partners, a company affiliated with MBS market pioneer Lewis Ranieri, is...
Look for increased volume of new non-agency mortgage-backed securities issuance and more companies issuing these deals in 2013, industry analysts say. Underwriting standards could loosen somewhat as investor demand strengthens. Through the beginning of December, $3.46 billion in non-agency jumbo MBS was issued in 2012, according to the Inside Mortgage Finance MBS Database. Redwood Trust accounted for 56.7 percent of that volume, with an affiliate of Credit Suisse Group accounting for the rest ...
Credit Suisses jumbo conduit is increasing its acquisitions and looking to issue more non-agency jumbo mortgage-backed securities, according to Luke Scolastico, a vice president at Credit Suisse. Were buying loans every day, he said last week at a panel discussion hosted by the American Securitization Forum. More last month than the month before, and more that month than the month before. Credit Suisse has issued $1.50 billion in non-agency MBS so far in 2012. While the first deals ...
Bank and thrift holdings of first-lien mortgages increased by 3.6 percent in the third quarter of 2012 compared with the third quarter of 2011, according to a new ranking and analysis by Inside Nonconforming Markets. The growth, outpacing portfolio runoff and an overall decline in mortgage debt outstanding, is tied to non-agency mortgages as well as agency-eligible loans being retained by banks. Industry participants are divided on whether the first-lien holdings will ... [Includes one data chart]
The guaranty fees charged by Fannie Mae and Freddie Mac are close to hitting a tipping point where non-agency mortgage-backed security issuance will be the more economic execution for new originations, according to some non-agency participants. If the non-agency pricing is improving and the GSE pricing is worsening, at some point youre going to hit a tipping point, Luke Scolastico, a vice president at Credit Suisse, said last week at a panel discussion hosted by the American Securitization Forum ...