By Glen Fest
Like the refinancing that managers raced to complete before Dec. 24, 2016, this activity is driven by a desire to avoid retaining skin in the game. But this time, managers are taking advantage of a narrow exemption spelled out 18 months ago in a "no-action" letter from the SEC.
January 24, 2017 – Former Virginia attorney general Ken Cuccinnelli lambastes the CFPB as a 'failed experiment' whose powers should be relegated back to the federal agencies enforcing consumer protection prior to Dodd-Frank.
January 23, 2017 – Morgan Stanley Capital I Trust 2017-PRME relies on a third party, an affiliate of Blackstone Real Estate Debt Strategies, to hold the 5% stake necessary to comply with the risk retention requirement.
January 23, 2017 – SolarCitys previous securitizations, all since 2014, collateralized only the leasing and power-purchase agreements.
January 23, 2017 – The Consumer Financial Protection Bureau is ramping up enforcement actions ahead of a possible political showdown between President Donald J. Trump and the agencys director, Richard Cordray.
January 18, 2017 – SoFi is plotting its mortgage blitz following a bruising year for so-called marketplace lenders, in which investor demand dried up for the loans made on these online platforms typically unsecured personal loans.
January 8, 2017 – The face of U.S. student loan debt is usually an underemployed twentysomething. But increasingly, the burden of paying for higher education is falling on older Americans.
January 5, 2017 – Proponents of "recap and release" misread the political risks and the depth of interest that key lawmakers have in determining the long-term future of Fannie Mae and Freddie Mac
January 4, 2017 – The performance of aircraft, railcar and auto fleet lease securitizations will continue to benefit from steady, if modest economic growth; however, anemic growth in global trade will be a negative for bonds backed by container leases.
January 3, 2017 – Despite mounting losses, credit ratings agencies maintain a steady-but-cautious outlook for subprime auto loan securitization portfolio performance in 2017.
December 28, 2016 – A recent piece making light of GSE recapitalization is dangerously misleading, according to the Executive Directors of the Community Mortgage Lenders of America and Community Home Lenders Association.
December 27, 2016 – Commercial real estate markets should continue to improve in 2017, though it remains to be seen how big of a role mortgage bonds will play in financing going forward.
December 26, 2016 – Though some may dispute the magnitude of the issue, when credit enhancements can no longer absorb the impact of borrower defaults, cash flows will become constrained and bondholders and trusts will suffer losses.
December 22, 2016 – The frenzy of issuance in November-December may have pulled forward activity that might otherwise have occurred in January; however strong demand from overseas investors should keep spreads tight.
Treasurer, Head of Asset Management
Firm: NewStar Financial
It's unclear how the new political environment will affect the platform's viability or how investors will view the securities issued on it. The next year could determine the project's success and role reshaping the secondary mortgage market.Current Issue