Securitization

The expected decline in conventional mortgage volume may open the door for more non-qualified mortgage lending as secondary market investors seek new opportunities to deploy capital, says Tom Millon, CEO of Capital Markets Cooperative.

After 10 years of conservatorship, the new year could finally usher in big steps toward housing finance reform.

Liquidity, products and pricing are the main concerns for the secondary mortgage market in 2019.

When it comes to reversing their crisis-era bond buying, central bankers are focused on the destination. Traders in risk assets care more about what could be a painful journey.

The Property Assessed Clean Energy sector is getting a boost from the expansion of improvements eligible to be financed via tax assessments, including fire resiliency and total building renovations, according to DBRS.

Next year is unlikely to offer relief from higher rates or housing supply shortages, according to the consensus forecast from 24 of the Securities Industry and Financial Markets Association's member firms.

Both the $646M UBS 2018-C15 and the $796M MSC 2018-H4 deals have relatively low leverage, helped by the inclusion of loans with investment grade characteristics.

Investors in agency mortgage-backed securities will find next year to be "anything but smooth sailing" as Federal Reserve rate hikes and balance sheet reduction will lead to an increase in real rates and volatility while pushing spreads wider, Bank of America said.

As home value appreciation slowed, gains in home equity for the third quarter fell to the lowest level in two years, according to CoreLogic's homeowner equity report.

CleanFund has created a division that helps structure Property Assessed Clean Energy financing to meet a mortgage lender's credit criteria; its also talking to lenders about co-financing the energy upgrades.

Private-label residential mortgage-backed securitization is approaching a post-crisis high, according to Kroll Bond Rating Agency.

A National Fair Housing Alliance-led group plans to amend and refile a recently dismissed complaint against Deutsche Bank, Ocwen Financial Corp. and Altisource Portfolio Solutions alleging racial discrimination in property preservation.

Subprime originations are climbing in multiple consumer loan categories, including mortgages, but the increase is much smaller in the home loan sector than it is in other markets, according to TransUnion.

Ginnie Mae is adding steps to its process for evaluating new issuers, including new notification requirements related to subservicer advances, servicing income, and borrowing facilities secured by mortgage servicing rights.

Accessory dwelling units are gaining attention as a way to boost the supply of rental housing; dedicated financing could help those who need it the most.

Fannie Mae completed 10 traditional and front-end credit risk insurance transactions during 2018, sharing $2.6 billion of risk, including $192 million in its final deal of the year.

Ginnie Mae officials are concerned about unusual activity with Department of Veterans Affairs cash-out refinances and are investigating the causes, as well as whether predatory lenders are taking advantage of veterans.

UBS Group sold tens of billions of dollars' worth of residential mortgage-backed securities by "knowingly and repeatedly" making false and fraudulent statements to investors about the loans backing those trusts, the U.S. Justice Department said in a civil suit filed Thursday.

Continued diversification of its business lines and better margins in its securitization activities helped Redwood Trust overcome steep mortgage origination declines and post nearly 14% annual growth in net income during the third quarter.

While the foreclosure crisis is over and federal regulators are being less assertive on enforcement actions, mortgage servicers must remain vigilant about compliance, as state agencies are stepping up their own oversight, according to Standard & Poor's.