Lew Ranieri -- the Wall Street sage who helped invent the MBS -- believes the Securities and Exchange Commission needs to play a central role in forcing issuers to increase disclosures on bonds collateralized by nontraditional residential loans.Mr. Ranieri told MortgageWire that "this isn't an indictment of the SEC," but added that "the transparencies are not what they should be." The interview followed a speech he made before a housing forum sponsored by the Office of Thrift Supervision. Mr. Ranieri also said the banks he is associated with have basically pulled out of the whole-loan market. (Mr. Ranieri said he has been a whole-loan investor for more than 20 years.) He said when his trading operation applied the new federal guidance on nontraditional mortgages to loans it was bidding on, it "kicked out 30% to 40%" of the product. Mr. Ranieri is concerned that end investors are not getting enough information on bonds backed by nontraditional mortgages, and that the new federal guidance is not applicable to this market because 80% of the product is sourced through loan brokers, winding up in bonds issued by companies not regulated by the banking agencies.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
39m ago -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
4h ago -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
7h ago -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
9h ago -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
9h ago -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24