Arch Bay Capital has issued a $57.4 million MBS backed by seasoned performing and delinquent subprime loans, garnering a AAA rating on the bond, a sign that the private-label market could come back but only if issuers are willing to make little money on their deals.
Even though home values continued to firm up in December, the man who created the Standard & Poor’s/Case-Shiller index is worried that “underwater borrowers” will eventually stop making payments, sending delinquency rates rising again.
The FHA’s nearly forgotten Hope for Homeowners program may get a jump-start now that Joel Harrison of Banker’s Portfolio has lined up an investor willing to make a multibillion-dollar bet on underwater mortgages.
The delinquency rate on all residential loans fell slightly in the fourth quarter to 9.47% while “seriously delinquent” mortgages (90 days or more past due) continued to rise, according to new figures released by the Mortgage Bankers Association.
The nation’s GSE regulator says Fannie Mae and Freddie Mac will not provide their traditional support for the mortgage-backed securities market when the Federal Reserve stops purchasing agency MBS at the end of March.
The delinquency rate on all residential loans fell slightly in the fourth quarter to 9.47% while “seriously delinquent” mortgages (90 days or more past due) continued to rise, according to new figures released by the Mortgage Bankers Association.
As the Federal Reserve ends its purchases of mortgage-backed securities, Fannie Mae and Freddie Mac could become buyers if private investors don’t return to the market, a Freddie executive said.
