MIAC’s Whole Loan Trading Desk reviews agency pricing trends, Treasury yield movements, and liquidity conditions across whole loan asset classes and provides an overview of key market insights.
Market Commentary
Agency pricing worsened in July. Pricing on the UMBS 5.5 was 100.07 to start the month and fell to 99.41 at month end, a -0.660% change in price.
The 10-Year Treasury yield rose to 4.38% by month end, which is approximately 15bps higher than the end of June.
In the last 90 days, we have seen new origination spreads tighten on Jumbo loans by approximately 15 bps and Conforming product by approximately 19 bps relative to the 10 Year Treasury, and in the last 30 days, spreads have tightened by approximately 2 bps for Jumbo and 8 bps for Conforming mortgages. Investors have an appetite for mortgage debt, and it continues to be an opportune time to sell illiquid mortgage portfolios, as limited inventory has provided for aggressive pricing.
FNMA announced the results of 2 Low LTV, Non-Performing Loan offerings with average note rates in the mid-4’s, which received cover bids very near par. Pools with significant equity that are seriously delinquent can occasionally see premium pricing given the buyer’s opportunity to recover advances and delinquent interest through foreclosure. Buyers continue to show a strong appetite for Scratch & Dent, Non-Performing, and Non-QM portfolios. Sellers are generally looking for premiums to move any performing product without defects, and the sell-side inquiry has remained stable for both performing and delinquent loans.
Market Intelligence
MIAC seeks to drive the execution of whole loan transactions across a broad spectrum of asset types, leveraging decades of experience in trade execution and settlement. Each year, our team values several trillion dollars’ worth of whole loans, including EBO, Scratch & Dent, NPL, RPL, Non-QM, and CRE. Through our brokerage and valuation services, we gain insights into market trends and trade execution.
Individual Loan Pricing Report
Benchmark Rates
Loan Sales & Execution
We offer a marketing effort focused on engaging qualified counterparties for your trade. MIAC’s brokerage professionals work as a partner, assisting the seller through the auction process. We strive for a smooth transaction and best execution.
Highlighted Offerings
$3.2 Million Scratch and Dent Whole Loan Sale
$46 Million Mortgage Loan and REO Whole Loan Sale
$42.7 Million Scratch and Dent Whole Loan Sale
Contact
Steve Harris
Managing Director, MIAC Capital Markets
(908) 400-2615
Steve.Harris@miacanalytics.com
Nicholas Dorn
SVP, Whole Loan Sales, Trading
(561) 346-6814
Nicholas.Dorn@miacanalytics.com
This commentary and analysis is prepared by the Mortgage Industry Advisory Corporation® (MIAC) and not a research analyst and is not intended to constitute a research report. The views expressed herein are not independent of the interests of MIAC or its clients This commentary and analysis is provided for informational purposes only and does not constitute a recommendation of or a solicitation to buy or sell a security, whole loan, mortgage servicing rights and related derivatives and assets. This information is being provided exclusively to Institutional Investors as defined by FINRA. Because this commentary and analysis is for Institutional Investors only, it is not subject to all the independence and disclosure standards applicable to reports prepared for retail Investors. For the same reasons, this commentary and analysis may not be copied, forwarded or redistributed in any form to retail or non-institutional investors.
The information presented here is accurate to the best of our knowledge and is based on information that has been provided to us. All opinions and conclusions in this report reflect MIAC’s judgment as of this date and are subject to change. All analyses are based on certain assumptions noted herein and different assumptions could yield substantially different results. You are cautioned that there is no universally accepted method for analyzing financial instruments. Statements contained herein that are not historical facts are based on current expectations, estimates, projections, opinions, or beliefs of MIAC as of the date indicated. By using or relying on this information, the reader agrees that MIAC shall have no liability for the accuracy of the information contained herein, for delays or omissions therein, or for any results based on the use of, or reliance on, such information. To the extent any information herein represents, or is based upon, “forward-looking statements” or information (which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipation,” “project,” “estimate,” “intend,” “target” or “believe” or comparable terminology), please note that, due to various risks and uncertainties, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements or information. In addition, past or projected performance of MIAC and its principals is not necessarily indicative of future results. MIAC makes no guarantee that any of its investments will be able to achieve these targets. Targets are objective and should not be construed as providing any assurance as to the results that may be realized in the future from investments by MIAC. The results of MIAC’s investments may differ significantly from any performance data provided or referenced herein due to a number of factors and any such difference may be material. Investors can lose their investment in whole or in part.
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