What’s lost in transition from Libor to new benchmark
The London interbank offered rate has its faults, but at least it compensates for counterparty risk; not so the benchmark being touted as a replacement.
By
Glen Fest
Risk
Freddie Mac’s risk-sharing success may help lower G-fees
If Freddie Mac's credit-risk transfer activities continue to grow, mortgage lenders could eventually see a reduction in the guarantee fees they pay to the government-sponsored enterprise, according to CEO Donald Layton.
Charter creep concerns resurface in Freddie’s new risk-sharing pilot
Freddie Mac and Arch Capital are testing a new form of risk-sharing deal to boost investor appetite for low down payment mortgages. But the pilot is raising concerns about "charter creep" because it dictates private mortgage insurance decisions typically made by lenders.
Freddie debuts another front-end risk transfer product
A group of reinsurers has committed to provide up to $650 million of coverage for credit risk on some $21 billion of 30-year, fixed-rate loans that the government-sponsored agency will acquire over the next two years.
Fannie Mae’s delinquency rate returns to high last seen in March
Fannie Mae's serious delinquency rate climbed to a high not seen since March 2017, but remained lower than it was 12 months prior.
Portfolio managers divided on outlook for credit conditions
The IACPM's quarterly survey indicates an even split among credit portfolio managers on North American credit spreads in both investment-grade and high-yield assets.
By
Glen Fest
Ginnie accelerates issuer buyouts in response to storms
Ginnie Mae is giving expanded loan buyout authority to certain issuers in order to help them remove loans affected by Hurricanes Irma and Harvey from securitized mortgage pools.
Investors seek change to Freddie CRT policy in storms’ wake
Mortgage investors want Freddie Mac to align its policy with Fannie Mae's when it comes to how delinquencies related to Hurricane Harvey affect credit risk transfer deals.
RMBS exposure to Irma could be high for a single storm
Hurricane Irma could potentially affect more private-label mortgage securities collateral than any other recent storm.
Replacing HARP creates wrinkle in Fannie, Freddie risk-sharing deals
Fannie Mae and Freddie Mac will adjust their risk-sharing deals so that they can accommodate high loan-to-value loans refinanced under the programs replacing the Home Affordable Refinance Program.
JPM, other lenders kept loan buyers in dark about probe, lawsuit says
JPMorgan Chase is among four banks sued by a trustee for investors in the debt of Millennium Health LLC, alleging the lenders failed to inform them of a federal probe into the billing practices of the borrower.
GSEs transfer $5.5B of credit risk in 1Q: FHFA
The government-sponsored enterprises transferred $5.5 billion of credit risk on $174 billion of mortgages in their portfolios during the first quarter.
Credit card issuers face peril from rise in store closures: Report
Synchrony Financial and Alliance Data Systems are particularly vulnerable to recent shifts in Americans’ shopping habits, according to new research from Moody’s Investors Service.
How Canada’s dealing with its own home affordability crisis
Canadian officials are working to slow a rapid rise in home prices that's being attributed to tight inventory levels in the country's largest cities and is threatening to create a housing bubble.
