Securitization

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.

Hudson Americas is pooling its next aggregation of non-qualified, high-balance mortgages in a new securitization that is exposed to a large share of borrowers seeking or already receiving pandemic-related forbearance or deferral on payments. So far, a little over half of those granted the allowance have yet to skip any payments.

The FHFA looks to shed light on the amount of funds Fannie and Freddie will need to hold for their risk-sharing deals.

The firm also predicts that the coronavirus pandemic will delay the GSEs' release from government control.

Just like volatility begets volatility, calmness helps support continued calm.

Fannie Mae and Freddie Mac have different timelines for the switch.

Kalahari Resorts defaulted on a $347 million mortgage originated by JPMorgan Chase

The coronavirus made it particularly tough for independent contractors and independent business owners to get home mortgages, but there are some signs that market may recover soon.

Starwood Capital Group is adapting its RMBS strategy for COVID-19, most notably through additional protections for senior noteholders to mitigate the substantial number of deferred mortgage accounts included in its newly sponsored deal.

The private equity firm's REIT arm is seeking to price a second CRE loan portfolio for May, this time led by an industrial portfolio of warehouses and logistics centers. No hotel or shopping mall loans are included.

Progress Residential is bringing its next securitization of single-family rental properties to market, even as concerns mount on the depth of pandemic-driven tenant forbearance and delinquency trends.