Private-label

The due-diligence firms that vet loans before securitization are erring on the side of caution when assessing the risk to investors of liability from the new consumer mortgage disclosure rules.

Now that it has the green light to expand its role in multifamily housing, Freddie Mac is looking at more ways to shift the credit risk on apartment building mortgages that it insures.

The experience of updating systems and overhauling workflows that mortgage lenders gleaned from implementing the TILA-RESPA integrated disclosures could prove useful to portfolio lenders as they implement a similarly complex accounting rule for reporting credit losses.

Fannie Mae has completed its latest Credit Insurance Risk Transfer transaction, the 10th deal since the program's inception in 2013.

Mutual of Omaha Bank and an affiliate of PlainsCapital Bank in Dallas have partnered to sell residential mortgages.

Fannie Mae has priced a $1.15 billion credit-risk sharing transaction through its Connecticut Avenue Securities series.

PHH Corp. said its loan closing dollar volume will decrease this year, after Bank of America's Merrill Lynch announced plans to withdraw business from the firm.

New lender disclosure requirements aren't just disrupting the market for private-label mortgage bonds; they could also impact the market for bonds that transfer credit risk of mortgages insured by Fannie Mae and Freddie Mac to the private sector.

As a handful of new issuers enter the market and the implementation of a key regulation pave the way for subprime securitization's comeback, the volume of new loans that are actually available to the market remains a question.

While the $1.9 billion of bonds are not guaranteed by the government, most of the underlying loans could have been sold to Fannie and Freddie, and the transaction accomplishes the same thing as the GSEs' risk-transfer deals.