The American Securitization Forum held its annual conference on the outskirts of Washington, D.C., this week because, to a large extent, that’s where the future of the MBS and ABS markets will be determined in coming years. Most participants agreed that the market regained stable footing last year despite major unresolved challenges for the securitization industry. Higher default rates...
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Industry sources remain concerned about how federal banking regulators will change the rules for mortgage and asset securitization in the future, even though a key official suggested that the Federal Deposit Insurance Corp. may extend its safe harbor beyond the end of March. The FDIC is drafting a new, far more detailed and prescriptive regulation that defines the range of MBS...
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The agency securitization space has been the only functioning sector of the secondary market over the last two years, and one type of MBS trade was hailed as the best thing to happen to the financial world: the to-be-announced market. “TBA is one of the top five markets ever created,” said Freddie Mac Vice President Mark Hanson at the American Securitization Forum’s...
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New issuance of single-family MBS by Fannie Mae, Freddie Mac and Ginnie Mae declined by 20.4 percent in January, according to the Inside Mortgage Finance MBS Database. The three agencies generated $108.92 billion of new single-family MBS during the month, down from $136.78 billion in December. All three agencies posted significant declines during the month... [Includes one chart and one graph]
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While legislation and other regulatory proposals try to sift out exactly how much risk loan originators and security issuers should retain before unloading assets, many industry experts are clamoring that risk retention may do more harm than good. But some other form of incentive alignment must be installed for the market to function properly. While risk retention is certainly a buzzword among...
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Managers in charge of Public Private Investment Program funds have spread their money fairly evenly among Alt A MBS, prime jumbo MBS and commercial mortgage securities, according to data recently released by the Treasury Department. Non-agency MBS represent 70.5 percent of the... [Includes one chart]
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