RMBS

Fannie Mae and Freddie Mac will adjust their risk-sharing deals so that they can accommodate high loan-to-value loans refinanced under the programs replacing the Home Affordable Refinance Program.

The number of U.S. properties that were equity rich in the second quarter grew by 1.6 million properties from a year ago.

The real estate investment trust acquired or aggregated $4.7B in prime jumbo loans in 2016, and has fed the securitization market with six deals this year with a collective pool balance of $2.22B.

The transaction's pool is a blend of conforming loans from Chase and non-conforming loans from various originators, including EverBank, Social Finance, Quicken Loans and United Shore Financial Services.

The bonds are supported by the monthly income stream and underlying property values of 3,480 single-family rentals, most of which Tricon acquired from Silver Bay Realty Trust in a February merger.

A higher proportion of borrowers have a “spotty pay history,” and the loans are more geographically concentrated than recent deals, but this is somewhat mitigated by higher borrower equity, says Fitch Ratings.

Moody's believes that rules grandfathering existing transactions increase the risk that these deals could be left unhedged; it may downgrades some European RMBS and U.S. student loan-backed securities.

The Federal Reserve was not an economic buyer; it accumulated its vast holdings of mortgage bonds for policy reasons; Fannie Mae's chief economist, Douglas Duncan, looks at who might step up, and at what yield.

The senior tranche of triple-A rated notes to be issued benefits from 38.65% credit enhancement, up over 10 percentage points from 27.25% for the comparable tranche of the sponsor's previous deal.

The senior, triple-A rated tranche of notes to be issued benefits from 38.65% credit enhancement; that's up over 10 percentage points from 27.25% for the comparable tranche of the sponsor's previous deal.