Distressed funds blocked from buying debt no one else wants
In the US, some loans include blacklists, which name specific funds that aren't allowed to buy the debt. Those restrictions have come into focus recently.
Capital markets
Ginnie Mae reduces minimum size for securitized HECM pools by 75%
Interest rate increases and economic concerns led the government entity to lower the required amount from $1 million to $250,000.
Consumer credit resilient even as debt, delinquencies rise
Average scores remain unchanged but signs of payment stress keep emerging, with Fannie Mae's serious delinquency rate up for the first time since August 2020.
Loan modifications at GSEs dropped, but signs of early distress emerge
Foreclosure prevention actions overall fell for the sixth time in seven months in October, according to the FHFA.
Ginnie Mae ends 2022 with issuance rate far below pre-pandemic levels
The latest month's volume was more than $20 billion lower than in March 2020.
Multifamily mortgage volume likely to drop 11% in 2023
The sector is not immune to the same economic instability that affects the single-family residential market, the Mortgage Bankers Association said.
MBS will ‘bend, not break’ from credit woes and a bank retreat
Other investors could step into the breach as depositories depart, and the strain on nonconforming borrowers might not be that bad, recent forecasts suggest.
CLOs: Attractive investments and robust 2022 output despite tight arbitrage
The consensus calls for shrinking collateralized loan obligation volume in 2023, but rewards are said to outweigh the risks.
By
John Hintze
Newer delinquencies become more of a focus at the GSEs
Loans with payments late by a year or more were the biggest sub-category within the distressed portfolios a year ago, but now mortgages that've been late for 30-59 days are.
Carrington markets second liens to existing servicing customers
The products are currently limited to a single distribution channel, but the company hasn't ruled out offering them through third-party originators in the future.
Private-label MBS will go from ‘bad to worse’ in 2023, forecasts say
Deterioration in credit quality should put strain on collateral originated in late 2021 and early 2022, affecting performance, Barclays Credit Research said.
Achieve closes rare HELOC securitization
These types of transactions largely disappeared from the market for years after the Great Recession.
RMBS issuance likely to end the year down 17%
Prime mortgage activity fell notably while nonprime deals and government-sponsored enterprise credit risk transfers increased in 2022, according to Kroll Bond Rating Agency.
Credit score prices to rise as much as 400% in 2023
However, a tiered pricing system will limit an inflation-driven increase to under 10% for a small group of originators.
Availability of real estate capital may be lower in 2023
Nonbanks will probably see the least change, while securitization lenders, depositories and REITs are likely to experience the most, an Urban Land Institute survey suggests.
Fannie Mae, Freddie Mac to include social disclosures in MBS issuances
Scores will be assigned to all loan pools created since 2010, including future securitizations, and are expected to help investors determine the share of mortgages meeting specific characteristics.
Who will buy MSRs if Ginnie Mae’s new rule prompts exits?
The government mortgage-bond insurer's requirements that restrict investor involvement are likely the greatest challenge to finding more purchasers of MSRs, experts said at a servicing conference Monday.
Two Harbors reported mixed results in 3Q, sold $20B in servicing
The company was profitable on a net basis but took a comprehensive loss linked to market volatility's effect on mortgage bonds.
Angel Oak posts third consecutive quarterly loss amid non-QM headwinds
The company is floating the possibility of selling a portion of its loan portfolio to free up liquidity in coming months, leaders said.
Freddie Mac earnings slip due to credit provision
The government-sponsored enterprise put more money aside as mortgage interest rates rise and home prices start to decline.
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