Securitization

After receiving a third-party stamp of approval, Fannie Mae announced July 27 completing the latest two issuances of a single-family green mortgage backed security as part of an ongoing program that started in April and expands its long-time multi-family green MBS program.

The company lost $8.9 million in the second quarter, but its origination and servicing businesses were profitable.

Moody's says anchor stores like J.C. Penney and Neiman Marcus represent only a small portion of CMBS retail exposure, but their deteriorating fortunes will hasten the decline in credit quality of CMBS-held loans backed by Class "B" and "C" malls.

Issuers approved for the program will receive written authority to use "digital collateral" for a limited number of securitizations.

The single-borrower deal, sponsored by Brookfield, was pulled in the spring due to market conditions that halted most securitizations at the onset of the COVID-19 outbreak.

Tricon American Homes launches the fifth securitization since mid-May secured by loans that finance institutional ownership and management of single-family residential rental homes.

While the multifamily loan forbearance rate is lower than the most pessimistic projections, Pat Jackson says borrowers are hardly out of the woods yet.

The mortgage insurer is receiving $528 million of coverage in the event of defaults in a $44 billion loan pool.

The collateral in the $338 million also includes a large subset of mortgages (45% of the pool) that are considered "dirty current" loans with recent delinquent status.

FHFA, HUD and Ginnie Mae should let the rate of prepayments on MBS dictate bond prices and market rates.

The government agency's restrictions on issuer options for pooling loans go into effect immediately. Here's one thing it could mean for the secondary market.

For banks with assets between $10 billion and $100 billion, the average exposure is 165% of capital.

Starwood Capital Group missed two monthly payments on securitized debt tied to five shopping malls anchored by bankrupt department stores including Sears and J.C. Penney.

New Residential Investment Corp., fresh off a substantial first-quarter reduction of its asset holdings, is now planning to securitize the receivables on its $200 billion servicing portfolio of Fannie Mae-owned mortgages.

The REIT will add $500 million in capital through a senior secured loan, and it received a $1.65 billion term facility.

But deal sponsors are primarily restricting property assets to the lower risk multifamily and office buildings that lenders are more confident will weather the economic strains brought by the coronavirus pandemic.

Borrowers gained over $6 trillion in home equity since the Great Recession ended and the relative health of the housing market should stave off a coronavirus-induced collapse, according to CoreLogic.

Mortgage rates increased slightly for the second consecutive week, buoyed early on by positive economic news such as the jobs report that came out last Friday, according to Freddie Mac.

The Federal Reserve pledged to maintain at least the current pace of asset purchases and projected interest rates will remain near zero through 2022, as Chairman Jerome Powell committed the central bank to using all its tools to help the economy recover from the coronavirus.

Mortgage investors can take heart knowing the Federal Reserve considers agency MBS a primary arena through which to conduct monetary policy.