Keyword: mbs

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  • 'Mortgage crisis' is coming this winter: Bove

    09/11/2014 2:02:42 PM PDT · by Lorianne · 27 replies
    CNBC ^ | 02 September 2014 | Jeff Cox
    A toxic brew is bubbling in the housing market that will lead to a mortgage crisis by winter, banking analyst Dick Bove said. Now that the Federal Reserve is nearly done with its monthly bond-buying program, which includes mortgage-backed securities, and Washington continues on its quest to unwind Fannie Mae and Freddie Mac, conditions could get dicey in the home loan market. Bove envisions a scenario in which long-term financing, like the ubiquitous 30-year mortgage, that has come with fixed interest rates is endangered as mortgage buyers dry up. As part of its quantitative easing program, the Fed had been...
  • Ranieri Says Tight Mortgage Lending May Be Worse Than Crisis (How About Borrowers??)

    10/28/2013 10:44:52 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 10/28/2013 | Anthony B. Sanders
    Mortgage-backed securities legend Lew Ranieri made an impassioned plea for regulations to loosen credit standards on home loans at the Mortgage Bankers Association (MBA) annual conference in Washington D.C. The U.S. mortgage market has experienced an “irrational restriction” of credit as lenders and regulators overreact to the loose lending during the bubble that burst in 2007, mortgage-bond pioneer Lewis Ranieri said. mtgvol1998 “If this legacy persists the consequences will be more profound for the country than the economic losses” caused by the bust, Ranieri said today at an annual conference hosted by the Mortgage Bankers Association in Washington. Ranieri, the...
  • Fed: Forward Guidance Or Crony Capitalism? (The Case Of PIMCO)

    09/27/2013 9:26:35 AM PDT · by whitedog57 · 2 replies
    Confounded Interest ^ | 09/27/2013 | Anthony B. Sanders
    Carrick Mollenkamp had an interesting piece today called “Special Report: Pimco shook hands with the Fed – and made a killing.” In short, the fund-management firm, led by co-founder Bill Gross, started buying tens of billions of dollars in mortgage-backed securities guaranteed by federally sponsored agencies like Fannie Mae and Freddie Mac. In the third quarter of 2011 alone, Pimco’s flagship Total Return Fund, the world’s largest mutual fund, doubled its holdings of these securities to $80 billion, according to a Reuters review of trading and other data. While Pimco was building its hoard, the Fed, in a surprise move...
  • The Return of Private Mortgage Capital? Two Harbors Planning Non-agency MBS

    08/13/2013 1:28:13 PM PDT · by whitedog57
    Confounded Interest ^ | 08/13/2013 | Anthony B. Sanders
    The trend continues towards private capital returning to the mortgage market. Redwood was one of the first securitizing California jumbo loans. Now Two Harbors (Pine River) is entering the market without a government guarantee. Aug. 13 (Bloomberg) by Jody Shenn — Two Harbors Investment Corp., the mortgage real-estate investment trust run by Pine River Capital Management LP, is planning its first issuance of home-loan securities without government backing. Even with investors in AAA slices of such deals demanding even higher yields in comparison to benchmark rates, Two Harbors could earn about 6 percent to 7 percent when retaining the subordinate...
  • Detroit Pension Woes A Drop In The Entitlement Bucket Compared To The USA

    08/05/2013 6:32:21 AM PDT · by whitedog57 · 5 replies
    Confounded Interest ^ | 08/05/2013 | Anthony B. Sanders
    Detroit’s fiscal woes have been front and center in the news recently. Now this is a new claim that Detroit’s pension woes are not as bad as Kevyn Orr, the city’s emergency manager, estimated. Orr stated that the underfunding of the city’s two pension funds at $3.5 billion. Orr arrived at that figure in part by estimating the funds’ expected annual return on assets at 7%. The city’s actuary, meanwhile, says the size of the gap is actually $977 million, based in part on an expected annual return of 8%. So, not as bad as Orr’s calculated. But can Detroit...
  • Freddie Mac’s Risk-Sharing MBS Off To A Slow Start (Wide Spread For M2 Mezz Piece)

    07/19/2013 10:32:50 AM PDT · by whitedog57
    Confounded Interest ^ | 07/19/2013 | Anthony B. Sanders
    Freddie Mac’s risk-sharing MBS is off to a slow start. 1 month Libor +350bps for M1 mezz piece and 1 month LIBOR + 750bps for the M2 mezz piece. freedierisk Freddie Mac agency credit-risk bonds price talk widens to 1ML+350bps for M1, 1ML+750bps for M2s. • Guidance from earlier this week was +250bps, +725-750bps; was even wider before deal announcement • May price as soon as July 22 • Information from two people familiar with offering who declined to be identified because terms aren’t set If we look at the term sheet, fredtermsheet, the ‘first loss’ piece is not being...
  • Disturbing Trends: US Money Multiplier and Velocity, Jobs, Mortgage REITs and Agency MBS

    07/06/2013 10:08:28 AM PDT · by whitedog57 · 4 replies
    Confounded Interest ^ | 07/06/2013 | Anthony B. Sanders
    The much ballyhooed jobs report on Friday (despite the fact that it was PART-TIME, not full-time jobs) raised the hopes of investors. US Treasury 10 year yields jumped 24.1 basis points on Friday on the news. ust10070613 For your consideration. The US labor force participation rate (SA) rose slightly to 63.5%. Of course, that means that 36.5% are NOT participating. Here is M2 Money Velocity plotted against the labor force participation rate (yellow). m2velpart The US Employment Population Ratio (SA) rose slightly to 58.7%. Once again, this means that 41.3% of the population are not employed. He is M1 Money...
  • Treasury Rates Rise Again, MBS Duration Increases (Market Finds A Way)

    06/21/2013 9:05:47 AM PDT · by whitedog57 · 32 replies
    Confounded Interest ^ | 06/21/2013 | Anthony B. Sanders
    Now that we know that The Fed is likely to withdraw its stimulus over the next year, global sovereign rates are rising. And the US Treasury 10 year continues to rise. Then there was this tantalizing story in the Wall Street Journal. Bernanke: Majority of Fed Officials Don’t Expect to Sell MBS The good news? MBS pay down quickly because of prepayments and other mortgage terminations. Hence, mortgage duration is fairly low. The bad news? Duration of Fannie Mae 4% MBS was 0.5 on September 25, 2012 and is now at 5.8 (thanks to rising Treasury rates). So, as Treasury...
  • Sorpresa! Treasury/TIPs Rates Spike, Agency MBS Prices Continue Slide (Fed Failing)

    06/10/2013 11:44:27 AM PDT · by whitedog57
    Confounded Interest ^ | Anthony B. Sanders
    May 2nd was turning point in the fixed-income market. Since May 2nd, Treasury yields have spiked. And Tips yields have spiked over the same period. U-oh. Agency MBS prices continue to decline. For those of us who expected rising rates, the curve trades have been most profitable. Here is the US Treasury curve change since May 2nd. Nearly 60 basis point jump on the 10 year. Here is a chart of Fannie Mae 3% MBS prices since May 2nd. Surprise! Interest rates are rising!
  • Grumpy Ben: Increasing Risk For Ginnie Mae Investors (Fed) – Rising Rates, Spreads And Duration

    06/03/2013 6:47:34 PM PDT · by whitedog57
    Confounded Interest ^ | 06/03/2013 | Anthony B. Sanders
    May has been a difficult month for Ginnie Mae mortgage-backed securities investors (like The Fed). First, the US sovereign yield curve has increased since May 2nd. The spread between the Ginnie Current Coupon and the Bankrate 30 year FHA rate has risen from around 61 basis points to under 100 basis points. The Ginnie MBS 4.0% duration has been rising rapidly with the increase in the yield curve. See here for a definition of duration. The convexity of Ginnie 4.0s has increased as well. The good news for the FHA and Ginnie Mae is the rise in house prices over...
  • First Union, Bear, Stearns Price Securities Offering Backed By Affordable Mortgages (1997)

    09/25/2008 5:58:18 AM PDT · by FreedomPoster · 3 replies · 1,173+ views
    Press Releases Media Contact:   Mark Folk (704) 383-7088 October 20, 1997First Union Capital Markets Corp., Bear, Stearns & Co. Price Securities Offering Backed By Affordable Mortgages Unique Transaction To Benefit Underserved Housing Market CHARLOTTE - First Union Capital Markets Corp. and Bear, Stearns & Co. Inc. have priced a $384.6 million offering of securities backed by Community Reinvestment Act (CRA) loans - marking the industry's first public securitization of CRA loans. The affordable mortgages were originated or acquired by First Union Corporation and subsidiaries. Customers will experience no impact - they will continue to make payments to and be...
  • EU: Cyprus has finally killed myth that EMU is benign

    03/28/2013 2:24:01 AM PDT · by bruinbirdman · 16 replies
    The Telegraph ^ | 3/27/2013 | Ambrose Evans-Pritchard, in Tokyo
    <p>The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.</p>
  • The Obama Hypocrisy: US sues S&P over pre-crisis mortgage ratings

    02/08/2013 6:33:10 AM PST · by Madhattan · 1 replies
    In charges filed late Monday in Los Angeles federal court, the Justice Department said S&P gave high marks to mortgage-backed securities that later went sour, even though it knew they were risky. The government said S&P misrepresented the risks because it wanted more business from the banks. The case is the government's first major action against one of the credit rating agencies that stamped their seals of approval on Wall Street's mortgage bundles. It marks a milestone for the Justice Department, which has been criticized for failing to make bigger cases against the companies involved in the crisis. "Put simply,...
  • Metal Mania: Gold, Silver, Real Estate and Mortgages

    12/02/2012 6:35:58 PM PST · by whitedog57 · 3 replies
    Confounded Interest ^ | 12/02/2012 | Anthony B. Sanders
    There is no doubt that the housing and commercial real estate bubbles (and burst). Gold experienced the greatest appreciation since 2000, with silver in second place. Multifamily real estate (Moody’s REAL) and the Case-Shiller 20 metro index demonstrate the plunge in real estate. Real estate did poorly relative to precious metals since 2000. [Bear in mind that these are price indices, not total rate of return indices.] In terms of total returns, the JP Morgan MBS return index outperformed the SP 500 index. The Dow Jones REIT index is the third index which started and ended at the same place...
  • U.S. Fed QE Infinity, What Is It All About?

    10/05/2012 4:24:56 AM PDT · by blam · 9 replies
    TMO ^ | 10-5-2012 | Ellen Brown
    U.S. Fed QE Infinity, What Is It All About? Interest-Rates / Quantitative EasingOct 04, 2012 - 03:10 PM By: Ellen Brown QE3, the Federal Reserve’s third round of quantitative easing, is so open-ended that it is being called QE Infinity. Doubts about its effectiveness are surfacing even on Wall Street. The Financial Times reports: Among the trading rooms and floors of Connecticut and Mayfair [in London], supposedly sophisticated money managers are raising big questions about QE3 — and whether, this time around, the Fed is not risking more than it can deliver. Which raises the question, what is it intended...
  • Stealth QE3 Is Upon Us, How Ben Did It And What It Means

    08/09/2011 8:44:40 PM PDT · by blam · 6 replies
    Economic Musings ^ | 8-9-2011 | DaviD Schawel
    Stealth QE3 Is Upon Us, How Ben Did It And What It MeansDavid SchawelAugust 9, 2011 Like most market observers and participants, the buildup to this afternoon’s Fed announcement was palpable. With the release void of an explicit “QE3” or new bond buying program, the Street was left to deal with ramifications of holding Fed Funds rates down until mid-2013. While, a new bond buying program was not explicitly announced, the implications will be in the form of a “stealth QE3”. What do I mean? This promise has caused (will cause) longer term rates to rally (prices up, yields down)...
  • Investor Lawsuits Are Raising the Heat on Bank of America for 'Putbacks'

    02/24/2011 6:25:33 PM PST · by FromLori · 18 replies
    Daily Finance ^ | 2/24/2011 |
    One of the straightest paths this country could take toward Bank Bailout 2, the Sequel, would be through forcing financial institutions to buy back the lousy mortgage-backed securities they sold before the meltdown. Large-scale buybacks could open gaping wounds on bank balance sheets, a risk Bank of America (BAC) is particularly vulnerable to because it swallowed Countrywide's gigantic -- and now infamously fraudulent -- mortgage machine. Regardless of that risk, banks should have to follow the rules of their contracts, and the law. But getting BofA to buy back its mortgage junk won't be easy. As of June 30, 2010,...
  • Regulators: Wake up and smell the loan risks

    01/18/2011 10:07:21 AM PST · by FromLori · 7 replies
    CNN Fortune ^ | 1/13/11 | Eleanor Bloxham
    Disputes related to failed mortgages are ballooning amid the fallout of loan securitizations and sales made by some of the biggest banks. But, for the time being, it doesn't look like the primary bank regulators are doing much about it. One example: The Federal Reserve Bank of New York is part of an investor group now asking Bank of America (BAC) to repurchase the mortgages it bought. The New York Fed sits in an interesting spot as both a concerned mortgage investor and as a regulator of the originators and securitizers that sell them. Despite suffering as an investor itself,...
  • Housing: U.S. economy’s Achilles’ heel

    01/16/2011 2:49:33 PM PST · by FromLori · 4 replies
    Market Watch ^ | 1/16/2011 | Greg Robb
    Housing typically leads economic recoveries, but this time around it’s slowing the economic recovery. Eric Rosengren, the president of the Boston Federal Reserve Bank, called the housing market “moribund” in a speech Friday. “I expect housing will not provide as much support to this recovery has it has in previous ones,” Rosengren said. CIBC World Markets chief economist Avery Shenfeld was even more pessimistic, saying he believes the weak housing sector will be a drag on consumer spending in the second half of the year. Shenfeld said he is forecasting economic growth to average 2.6% in 2011, as consumers will...
  • Indiana couple accuses Bank of America of racketeering

    10/20/2010 10:44:30 AM PDT · by Kartographer · 40 replies ^ | 10/20/10
    Bank of America Corp. and its Countrywide Home Loans unit were accused of racketeering in a lawsuit filed by two Indiana residents claiming that perjured affidavits were used to foreclose on their home. Dwayne Ransom Davis and Melisa Davis filed the complaint Tuesday in federal court in Indianapolis. Their lawyer, Irwin Levin, confirmed the filing in a phone interview, but it couldn’t be independently verified. “The defendants and their cohorts engaged in a pattern of racketeering activity in which they routinely and repeatedly prepared perjured affidavits in order to rapidly churn foreclosures,” the couple said in the complaint.