Financial reform legislation announced this week by Sen. Chris Dodd, D-CT, faces opposition from the mortgage industry, the securitization industry, community advocates and Senate Republicans. While the groups disagree on what is wrong with Dodd’s proposal, they all agree that it should be revised. Dodd’s “Restoring American Financial Stability Act of 2010” would create a new...
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The two largest home-equity loan servicers have now agreed to participate in the Second Lien Modification Program. This week, Wells Fargo opted in to the 2MP component of the Home Affordable Modification Program and Citi has indicated it will likely join as well. Second liens tend to be held in portfolio by large banks while first liens are owned by a wider range of investors...
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On average, non-prime servicers have completed Home Affordable Modification Program mods at the same rate as the entire mortgage industry. But HAMP activity varies significantly among non-prime servicers, including one servicer that has yet to complete a permanent HAMP mod. Servicers that predominantly handle non-prime mortgages cumulatively completed... [Includes one chart]
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The non-prime mortgage investments held by Fannie Mae and Freddie Mac continued to slowly drain away in 2009, shrinking by 4.4 percent in the fourth quarter to $565.5 billion, according to a new Inside B&C Lending analysis. That was down 16.4 percent from the end of 2008. Fannie had the larger non-prime portfolio at $312.4 billion at the end of 2009, including $251.1... [Includes one chart and one graph]
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Last year was a re-building year for former Alt A lender Impac Mortgage Holdings, and the company even managed to turn a profit. This week the company reported earnings in 2009 after large losses the previous year. Impac had $10.8 million in earnings in 2009, a vast improvement from the $44.7 million loss the company took in 2008. Impac’s 2009 earnings largely came from business...
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Investors looking to purchase non-agency mortgage assets can find good value in re-securitized non-agency mortgage-backed securities, according to industry analysts. Re-securitized non-agency MBS – generally bonds originally issued as part of a real estate mortgage investment conduit – currently provide mortgage investors one of the few investment-grade opportunities in the non-agency sector...
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Mortgages backing new non-agency securitizations are likely to have high credit scores, low loan-to-value ratios and full documentation, according to analysts at Fitch Ratings. The rating service based its predictions on the characteristics of non-agency jumbo mortgages currently being originated. Fitch said it is uncertain when the next non-agency mortgage-backed security issuance will occur...
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The Federal Deposit Insurance Corp. approved an extension of its securitization safe-harbor last week. The safe-harbor was extended through Sept. 30, when the FDIC could... The Connecticut attorney general filed a lawsuit against Moody’s Investors Service and Standard & Poor’s last week. Richard Blumenthal, the state’s AG...
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