Articles Tagged with ''mortgage-backed securities''

Cerberus issues $174 million of debt secured by home equity lines of credit

They're baaaaack, and rated triple-A
A unit of Cerberus Capital Management last week issued $174 million of debt secured entirely by home equity lines of credit, or HELOCs, according to The Wall Street Journal. It’s a type of mortgage bond that went extinct in the wake of the financial crisis after a reversal in home prices made older versions worth pennies on the dollar.
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FHFA merges GSE issuance to common security in bid to cut housing costs for millions

Fannie, Freddie officially move to Uniform MBS
As of Monday, Freddie Mac and Fannie Mae mortgage-backed securities will be issued under a common security – the Uniform MBS – in a move some have called the biggest change to the MBS market in a generation. FHFA called the implementation of UMBS "momentous" and said it will cut costs for American homebuyers, but what is it, and what exactly will it mean for the U.S. mortgage market?
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Morgan Stanley to pay $150 million for pushing toxic mortgage bonds on California's teachers and public employees

Finally settles 2016 charges with California Attorney General
Morgan Stanley has agreed to a $150 million settlement to resolve claims that it misrepresented the poor-quality of pre-crisis mortgage bonds and cost California teachers and public employees millions of dollars, the California Attorney General announced Thursday. The settlement puts an end to a three-year investigation into Morgan Stanley's failure to reveal the true nature of the mortgage-backed securities is was selling to CalPERs and CalSTRS.
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Is Fannie, Freddie's role in the housing market beginning to shrink?

A growing number of non-conforming loans are flowing to the private market as investors get in on the game
Private investors are buying non-conforming mortgage loans – which are usually the domain of Fannie Mae and Freddie Mac – at a growing rate. According to The Wall Street Journal, the number of loans that meet Fannie and Freddie standards for purchase are instead flowing to the private market. Banks and financial institutions are pooling them into bonds and selling them to investors without government backing, the WSJ said, calling it a consequential sign of changing dynamics.
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Ginnie Mae to modernize its systems by 2020

Makes plans to accept digital mortgages
Ginnie Mae recently announced that it plans on giving its systems a major makeover, and hopes to complete its modernization by 2020. The agency said its mortgage-backed securities platform, while reliable, is in need of major upgrades. Here are the company’s plans for the next two years.
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RBS reaches $4.9 billion settlement with DOJ over pre-crisis mortgage bonds

Proposed settlement would be far less than originally estimated
For the second time this year and at least the seventh time in recent memory, the Royal Bank of Scotland is about to cut a massive check as part of a settlement over the bank’s mortgage practices in the run-up to the housing crisis. Back in March, it was a $500 million settlement with the state of New York. Now, RBS is preparing for a nearly $5 billion settlement with the DOJ that would cover the bank’s issuance and underwriting of mortgage-backed securities between 2005 and 2007.
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SoFi hires former Goldman Sachs head of mortgage securitization as new CFO

Does Michelle Gill’s hiring mean more mortgage securitizations are coming?
Over the last few years, SoFi has become a fairly regular issuer of loan securitizations, whether they are backed by mortgages, personal loans, or student loans. Now, it looks like SoFi may be making a bigger move into securitizations by hiring the former head of mortgage securitization at Goldman Sachs as its new chief financial officer.
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Ginnie Mae reportedly boots two lenders from bond program over VA loan churning

NewDay and Nations Lending sanctioned
Ginnie Mae’s battle against a number of mortgage lenders that are aggressively targeting servicemembers and military veterans for quick and potentially risky refinances of their mortgages just went to another level. Ginnie Mae reportedly booted NewDay USA and Nations Lending from its primary mortgage bond program after threatening the lenders earlier this year over their abnormally high prepayment speeds.
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