Securitization

The availability of financing hasn’t been an issue to date, but it still could be.

The nonbank lender is co-sponsoring a $258.4 million residential mortgage pool comprised entirely of wealthy borrowers with 15-year term contracts.

Michael Gramins, who a jury convicted in 2017, was among more than a half-dozen traders charged by federal prosecutors in Connecticut with misrepresenting the prices of mortgage-backed securities to clients in order to increase their firm’s profits and their bonuses.

The deadline for inclusion in Ginnie mortgage-backed securities has been extended and an exception will be made for some participations.

The $425 million loan securitization is among two single-asset, commercial-mortgage deals launching this week. Brookfield Asset Management's global real estate arm is also tapping investors to finance an $825 million loan backed by a downtown Manhattan office building.

There are people creating a lot of unrealistic scenarios about market risk.

The pool of 359 loans also on average carry higher balances (over $900,000) compared to the REIT's earlier pass-through deal this year.

But late payments for all other investor types rose compared with the second quarter.

But existing deals are likely to experience issues resulting from higher defaults, faster prepayment speeds.

Whether Ginnie issuance increases in the future may depend in part on the extent to which the Biden administration wishes to tap the FHA to promote affordable housing and homeownership.