First quarter issuance doubled 2016’s total
By Ben Lane at Housingwire.com
Editor’s Note: Does anyone else seek stark similarities between what happened in 2007/08 and what is happening now? This is evidence that the housing bubble is complete. By now we know how this will play out in the near future.
Back in February, DBRS predicted that the residential mortgage-backed security market could see a resurgence in 2017 thanks to rising interest rates, which both drive down refinances and make securitization a more financially appealing option.
As it turns out, that’s exactly what’s happening.
A new report from Standard & Poor’s Global Ratings shows that RMBS-related issuance, which S&P defines as prime, re-performing/nonperforming, rental bonds, servicer advances, and risk-sharing deals, doubled in the first quarter of 2017 compared to last year.
According to S&P’s report, there was $14 billion in RMBS-related issuance in 2017’s first quarter, up from $7 billion in the same time period in 2016.
As a result of the strong first quarter, S&P said that it is increasing its 2017 forecast for RMBS issuance from $35 billion to $50 billion.
It should be noted that even if 2017’s total RMBS issuance reaches $50 billion, it would still be below 2015’s total of $54 billion. But $50 billion would top 2016’s total of $34 billion and 2014’s total of $38 billion.
According to the S&P report, 2017’s first quarter issuance consisted of $5 billion in credit risk-sharing deals from Fannie Mae and Freddie Mac and $4 billion of re-performing/non-performing loans.
S&P noted that the rise in jumbo issuance and non-conforming issuance is “positive for markets as issuers are now supplying enough issuance to support the development of a secondary market.”
And if that continues, a “broader scope of mainstream fixed-income investors” should be attracted to the market, S&P adds.
“Given this RMBS issuance surge, we are adjusting our 2017 forecast up to $50 billion and will have to continue monitoring the various components,” S&P states in the report. “The $5 billion of (risk-sharing) issuance suggests it reaching an issuance pace that has allowed it to be an ongoing investment program for many market participants.”
S&P’s report also compared securitization volume for consumer loans (auto loans, credit cards, commercial loans) and residential mortgages over the last 15 years.
The report shows that all four loan categories have grown substantially since 2001, but the volume of securitization in each category is down.
“Compared to 2007 leverage levels, residential mortgages today are $1 trillion less, whereas the other three loan products have substantially more leverage,” S&P notes in its report.
“Looking at the share of those that are securitized, all markets have seen lower utilization of securitization, with auto loans at 17.5% securitized, credit cards at 13%, CMBS at 17%, and non-agency RMBS at only 8%,” the report continues. “For the various products, these utilization rates are significantly lower than rates used in 2001, 2004, or 2007.”
The report states auto, credit card, and residential loans each saw an increase in the first quarter, which could be the start of some institutions increasing their securitization utilization. On the other hand, it may reflect the issuers taking advantage of “near-ideal issuance conditions and demand,” the report states.
Filed under: foreclosure | Tagged: MBS, securitization |
@Rhody, you may have an SOS- “sue or be sued” entity, claiming your “loan”. Check to see if the “Trust” claiming your “loan” is registered with the SEC. Also check FHA, VA, FHFA, F&F. . . If not in those, likely a private, SOS “Trust”. Next, check with the PSA to your “Trust”. Your “loan” likely entered AFTER the listed, “cut-off date”. A Cosmic impossibility- it means the criminals have fled the scene- the trick at that point is to find them _ Good Luck, damn near impossible. Also, check with PSA to see where the criminals registered the “Trust’s” PSA- either Delaware or NY as the two choices available to them. Chances are that never happened either. The fact is: every single bank is laundering terror and drug cartel money for enemies of the US that are presently murdering American and British Soldiers, in places like Afghanistan and the banks are using counterfeit American titles, to pre-payed “Mortgage loans”, as the “coin” to operate that laundry. Why in the world anyone would protect this system is obscene and it speaks to how truly corrupted DC and the Central Banking Filth have become.
@Rhody, which “Trust” claims your “loan”? And… did you read Mr. Garfield’s explanation and article where D. Belanger had two liens stripped as a consequence to a Phony “Trust” claiming they obtained his “loans”, subsequent to “GMAC’s” liquidation? Belanger proved GMAC never had his “loan”s among their assets prior to GMAC settling their bankruptcy. Also, D. Belanger confronted the “MERS” and forced them to withdraw, as well. Everyone’s fact pattern is different- although, more-to-the-point- what everyone is told by the criminals, may be different. I know, from my experience, two shell companies, the MERS and then RESCAP, are using counterfeit titles in order to capitalize on “Naked Short Sales”, aka, “Derivatives”, aka, cds- credit default swaps, aka, cdos -collateralized debt obligations, aka, synthetic cdos of synthetic, collateralized debt obligations. The criminal, English-based, European, Central Bankers have destroyed themselves through COUNTERFEIT SECURITIES- 1200 Trillions in intentionally-mislabeled, “Federal Reserve notes, bills and bonds” that pay out against insurance frauds (derivatives) on SECURITIES FRAUDS – “Mortgage-Backed-Securities”, with NO MORTGAGES IN THEM (google “bucket shop”). The Constitution, Article one, Section eight, explains, in UNAMBIGUOUS LANGUAGE: ‘The Congress shall have the power … To provide for the punishment of counterfeiting the SECURITIES and current coin of the United States…”. I can suggest you visit “The Burning Platform” and enter on the search bar, “Who’s my lender”?, then follow the prompts. If you have your mortgage fine, if not go to the county recorder and get a copy- among the note pages —– IF it is a MERS “loan”, you will find your 13 digit MERS number. —– IF you have a MERS “loan”, read this: http://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=3399&context=wmlr page 119 shepherds bifurcation cases. Page 116 explains the MERS asa a “shell company”, “Pretending” to “own” your “loan”.
https://livinglies.wordpress.com/2017/01/10/mersgmac-note-and-mortgage-discharged/
Belanger article, above.
Hope it helps.
@iwantmynpv, stay tuned, “Slappingtons.com” coming soon. All is not as it appears.
We filed a complaint at the SEC that our mortgage was assigned in a defective manner with breakage in title and, therefore, the securities issued must be defective. The SEC responded that the trust do not mention SEC all the names of properties used in RMBS for privacy reason. What could we say to this?
Both parties but…Sound familiar? https://mobile.nytimes.com/2008/11/17/business/economy/17gramm.html
Hey Michael, nice piece, but didn’t Congress (scumbags) turn over coinage to the Fed. They didn’t steal it… they bargained for it, but remember, even they are trying to sell of treasury notes, the crash is upon us.
amen to both of the previous commenters. you are both absolutely correct!
Your wallet, Dumbass, is NOT the American Flag, or The Great UnPuckering:
The screaming can be toned out. At least, until you become used to it- insofar as you may have encountered it before and it is not something you are unfamiliar with…
But, it is the human chin as it moves out of the rectum, accompanied by the popping and crackling of vertebra, that provides the proper soundtrack for our present, National affliction.
Truly? As I move along pages like this one, this morning? … Truly? Some of you are surprised?
Mein Drumpf and Clinton are two sides to the same ass-crack that has muffled every dialogue, beyond my ass cheek is better than your ass cheek, since the cessation of hostilities at the end of the American Revolution.
Angle-Land’s playbook is now and forever, “Divide and Conquer”. Our political system is an international joke and the Brexit is poised to deliver quite some number of freshly emptied ass cracks once their life savings are robbed in broad daylight.
The American Stock Exchange has as much legitimacy as any other Banana Republic and it will soon go the way of Quaddaffi, Hussein, Noriega… you name it. Pick your own ass… er, banana.
The Treaty of Paris created an English King as, “the arch Treasurer” of the United States.
The “Organic Act of 1871”, created these United States, a “Corporate Indenture”, to the City of London.
So… after bankrupting the US, by funding the Secessionist Bid, in a ruinous Civil War and then forcing liquidation, signed off by Treasonous Politicians, Our Original Oppressors are now shown, in broad daylight.
Most Americans are still firmly rooted in partisan rancor with their head up their ass, so daylight need not apply.
THE ANSWER: The intentionally-mislabeled, “Federal Reserve”- neither “Federal”, nor possessing ANY “Reserves”, is now, at this moment vulnerable and We The People have a rare opportunity to regain our ass cheeks, whether you keep your wallet on the left, or the right.
The intentionally-mislabeled, “Federal Reserve” is privately-owned and operated. The Criminal, English-based, European Central Banking Cartel has COUNTERFEIT 1200 Trillions in BOGUS, now-worthless, “Federal Reserve notes, bills and bonds”.
1200 Trillions is an impossible figure. As 20 X the combined GDP of every country, on this planet, no group of banks- let alone any individual bank- can ever possibly claim that amount as their Assets…
Yet, that is what the Criminal, English-based, European, Central Bankers are doing … right NOW.
It is time to ACT. The United States is, once again, at an historic Crossroad and We The People are uniquely situated to destroy our Oppressors- THE BANKS.
Article One, Section Eight, explains, in UNAMBIGUOUS LANGUAGE: “The Congress shall have the power … To provide for the punishment of counterfeiting the SECURITIES and current coin of the United States…”.
There are 1200 Trillions in SECURITIES FRAUD and INSURANCE FRAUD, owed to inter-bank CRIMINAL BEHAVIORS.
These CRIMINAL BEHAVIORS are called: “DERIVATIVES”.
The Clintons deregulated “DERIVATIVES”, now there are 1200 COUNTERFEIT Trillions owed to: “DERIVATIVES”.
These COUNTERFEIT TRILLIONS are owed to INSURANCE FRAUD that is, in turn, based upon EMPTY “MORTGAGE-BACKED-SECURITIES” that have NO MORTGAGES IN THEM.
THE MORTGAGES HAVE BEEN ROBBED IN ORDER TO LAUNDER TERROR AND DRUG CARTEL MONEY FOR KNOWN ENEMIES OF THE US THAT ARE PRESENTLY USING THOSE FUNDS TO MURDER AMERICAN AND BRITISH SOLDIERS…
Butt, by all means, keep your head up your ass and continue mumbling NONSENSE, one party is less CORRUPT than the other. The Stock Market will save you and the Central Bankers won’t send our children into yet, another phony war.
~ Michael Keane , copyright, 4/7/17, all rights reserved
“Slappingtons.com”, coming soon
Investors are not innocent.
When the government backs any systemwhether through deposit insurance, flood insurance, pension benefits or anything elsethe beneficiaries have only limited interest in the risks they are taking. In a housing finance system, that means investors in mortgage-backed securities have no need to be concerned about the quality of the underlying mortgages. By putting the government’s credit behind the securities their system would create, the US Congress has fallen into this trap.
The “GSE Business Model”, fatally flawed forever. It does not work as advertised and sold. A sham. Ask Bernie Madoff.