Last week, owing to an apparent breakdown in internal communications, one of the industry’s leading conference producers held two competing securitization conferences on the East and West coasts. A few determined conference goers, including Mark Hughes, executive vice president with Clayton Holdings, racked up frequent flyers miles to attend both, giving HousingWire the scoop on what went on.
The main reason why we’re not seeing new private-label mortgage deals, at the moment, is that the economics of private-label securitization simply don’t work in the current low-rate environment. Prime jumbo securitizations have slowed significantly. In 2015, for example, Kroll said 38 prime jumbo deals came to market, but in 2016, year to date, that number (by my count) is two.
It’s the $100 billion question going around ABS Vegas: When and what will it take for private-label securitization to return in a meaningful way? A question that the industry, and conference, is still attempting to answer.
For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.