By Allison Bisbey
The first commercial mortgage-backed security to comply with "skin in the game" requirements was extremely well received. Market participants credit the way the large banks sponsoring the deal retained the risk a strategy unavailable to nonbank lenders.
August 24, 2016 – The collateral is high quality and highly seasoned; however there is a risk that some of the loans to borrowers studying for the bar or in medical residency could be discharged in bankruptcy, according.
August 24, 2016 – The Federal Housing Finance Agency is seeking to make it easier for Federal Home Loan Banks to accept certain kinds of collateral, including commercial real estate loans, for advances.
August 23, 2016 – Angel Oak Capitals second securitization of non-prime residential mortgages brought its funding costs down significantly, helped by the addition of some new investors.
August 23, 2016 – The deal is backed by a portfolio of 1,410 single-family rentals, 1,343 of which are leased to tenants who have the right to purchase the leased property at a premium during the term of the lease: Moody's sees this as a credit positive.
August 25, 2016 – Many lenders are still reluctant to give mortgages to borrowers with less-than-pristine credit, yet there loans are far more likely than prime jumbo loans to be bundled into collateral bonds. Sreeni Prabhu, CEO and CIO of Angel Oak Capital, credits a lack of competition and higher interest rates.
August 16, 2016 – Arch U.S. MI's acquisition of United Guaranty Corp. will make one of the smallest private mortgage insurers the sector's new market leader. While the move is likely to ease pricing competition among the six remaining players, it's not expected to set off a wave of further consolidation.
August 7, 2016 – Rules requiring CLO managers to keep skin in the game of their deals has taken a toll on smaller firms. But the resulting thinning of the ranks has created room for some new players that are better capitalized, including insurance companies.
August 1, 2016 – Wells Fargo, Bank of America, and Morgan Stanley could have satisfied regulators by selling the riskiest slice of the commercial mortgage securitization to a designated third party; instead they are collectively holding on to 5% of each tranche of securities issued in the $870.6 million deal.
July 29, 2016 – The Federal Housing Administration is promoting a particular kind of financing for residential energy retrofits that another regulator staunchly opposes. Mortgage lenders and investors have qualms, too, about the impact on their standing in collateral claims.
July 24, 2016 – The unusually strong loan performance in the credit card business lasted longer than many observers expected. But today the industry's prolonged post-crisis era finally appears to be over.
July 21, 2016 – Since 2013, CLO Managers have been issuing notes with rates that are initially low, but step up after 18 to 24 months, betting that they can refinance them more cheaply; so far their success has been mixed.
July 11, 2016 – Banks that stuck with student lending after the financial crisis are finding the business far less risky than it used to be.
Treasurer, Head of Asset Management
Firm: NewStar Financial
State student loan authorities sense a business opportunity helping graduates who are gainfully employed lower their payments. Their low-cost funding could put them in competition with banks and marketplace lenders.Current Issue