Rebalancing Public/Private-Label RMBS Capital

The residential mortgage-backed securities market is currently grappling with a web of well-intentioned but often contradictory post-crisis rules and regulations that have given us an accidental RMBS market almost entirely dependent on taxpayer (i.e., government) money.

This year’s CoreLogic Symposium—a free-of-charge, half-day event*—focuses on understanding and correcting this unintended, unsustainable construct.

Mortgage and RMBS experts will explore key stumbling blocks to the return of private capital, how much of it is politics and how much of it is us, and what we can do to build a new, transparent, private capital-friendly RMBS marketplace. Symposium presentations will leverage the industry-leading breadth and depth of CoreLogic data, analytics, and professional expertise to go beyond conventional wisdom and tap into currently emerging new thinking about a real-world return to rebalanced public/private capital support for the RMBS market.

*Vendors and consultants must obtain prior CoreLogic consent in order to attend the 2014 New York Symposium. 

2014 New York Symposium Agenda

The 2014 CoreLogic New York Symposium is divided into four sessions—plus a continental breakfast and mid-morning break—each of which features seasoned experts supported by the latest data and most sophisticated analytics:

7:00 a.m. - Registration and breakfast
8:20 a.m. - Welcoming Comments
Ben Graboske, SVP Enterprise Financial and Advisory Services
8:30 a.m. -

The Housing and Mortgage Markets Are Getting Better—Right?
Presentation by Dr. Mark Fleming, chief economist

As we enter the all-important spring home-buying season, Dr. Mark Fleming, chief economist at CoreLogic, will provide an economic overview and his forecasts for both the housing and mortgage markets in 2014.

Specifically, he will address:

  • The Fed’s tapering and its impact on interest rates and affordability
  • The long-term impact of generationally low interest rates that have sidelined the best credits and fundamentally changed the refinance market
  • Conventional wisdom and why it is wrong as far as affordability, bubbles, and access to credit are concerned
  • Why the “M” in QM stands for “Meh”
9:20 a.m. - Bringing Private Capital Back to the Mortgage Market—Choose One from Column A or Column B
Panel moderated by Faith Schwartz, SVP of government solutions

Five years after the mortgage crisis, 80% or more of all mortgage risk is still borne by the government and, of course, U.S. taxpayers. Shrinking the government’s role and expanding private capital’s can be accomplished in one of two ways:

  1. Reining in the GSEs with higher guarantee fees and lowered loan limits to create more room and opportunity for lenders and Wall Street (assuming, of course, there is both interest and capital to fill this gap)
  2. Continuing to go through the GSEs or similar entities but requiring these guarantors to lay off more of the credit risk

This panel will explore the technical and political issues that need to be addressed before private capital can be "crowded in." It will discuss gaps in policy as well as the need for private efforts to address concerns about servicing, due diligence, pricing structures, and the enforcement of reps and warrants. The panel will also review the GSE’s early risk-sharing efforts and consider what more can be done. Panelists include:

  • Laurie Goodman, Director, Housing Finance Policy Center, Urban Institute
  • Eric Kaplan, Managing Director, mortgage finance, Shellpoint Partners LLC
  • Trez Moore, Managing Director, markets, Royal Bank of Scotland
  • John Vibert, Managing Director, portfolio manager, BlackRock Advisors LLC
10:05 a.m. - Mid-morning break
10:20 a.m. -

Cue Private Capital—Are We Ready to Take the Stage or is There More to Do to Be the Best Execution Again?

Michael Bradley, SVP of modeling & analytics at CoreLogic, and a panel of industry experts will delve into the current economics—and realities—of private-label securitization, 30 Year FRFT portfolio investment and management. The panel will to try to address questions such as: what constitutes best execution today between PLS and Whole Loan transactions and what duration risks lurk within mismatched portfolio assets and liabilities.

This panel will delve into the current economics—and realties—of private-label securitization. It will:

  • Look at the widening delta between private label and portfolio strategies
  • Discuss how standardization in origination, structured finance, and servicing could increase investor confidence
  • Consider how QM could better align origination and servicing—stripping away the excuses and focusing on what the industry can change now

Panelists include:

  • Brendan Keane, Managing Director, Structured Finance Solutions,  Sterne Agee
  • Morgan Snyder, SVP, Lender and Structured Products, Radian Guaranty
  • Luis Vergara, Managing Director, Mission Capital
11:10 a.m. -

Mortgage Servicing Rights—A Review of Downstream Risk

Tony Atkins, senior consultant in CoreLogic Advisory Services, will lead a panel of experts in examining the current and potential downstream risk posed to buyers of MSR assets and compare them to today’s due diligence strategies. This session will also cover the MSR outlook for 2014 and the impact of Basel III going forward---and who will be impacted the most. Panelists include:

  • Chris Castro, SVP, Transaction Management, Digital Risk
  • Kathryn Lester, Managing Director, Clayton Consulting Services
  • Matt Maurer, Managing Director, MountainView Servicing Group
12:00 p.m. - Conclusion

2014 Symposium Session Leaders

Leaders of the four Symposium sessions (panelists to be announced):

Dr. Mark Fleming

Mark Fleming, PhDMark Fleming, PhD, CoreLogic chief economist, is responsible for our collateral risk, valuation cascade, and house-price index models. His research interests include real estate and urban economics, applied econometrics, and mortgage risk. Fleming’s timely, authoritative industry analyses are quoted frequently by trade and national media (e.g., Wall Street Journal, New York Times) and he appears regularly on national business news broadcasts (CNBC, CBS, NPR, Bloomberg, Fox).

 

 

Faith Schwartz

Faith SchwartzFaith Schwartz, SVP, head of CoreLogic government solutions, leads and manages business relationships with U.S. financial regulatory agencies, government-sponsored enterprises (GSEs), and various federal agencies. Her team delivers solutions that help monitor the health of the U.S. mortgage industry and provide insight into the ever-changing risk environment, and services that help clients meet the challenges of new regulations in mortgage origination, servicing, asset and processing management.

 

 

Michael Bradley, PhD

Michael Bradley Dr. Michael Bradley, head of CoreLogic modeling & analytics, leads our decision-modeling and research groups, with responsibility for RiskModel®, AVMs, fraud models, collateral review tools, rental analytics, and the CoreLogic HPI® suite. His background includes leading collateral and risk management model-development teams at Citigroup® and Freddie Mac®, serving as an economist at the Federal Reserve and the Office of Thrift Supervision (OTS), and teaching economics at the University of Colorado.

 

 

Tony Atkins

Tony AtkinsTony Atkins is a senior consultant in the Advisory Services Group with more than 20 years of experience in the banking and financial services industry. Tony’s areas of expertise include all aspects of deal structuring, pricing, securitization, post-funding surveillance, portfolio risk management, credit underwriting, counterparty oversight and vendor management. Tony’s recent client engagements include the successful management of several, complex whole-loan transactions for a large regional lender. Before joining CoreLogic, Tony was the director of Asset Solutions/Investor Relations at Sun Trust Mortgage, Inc.

2014 CoreLogic New York Symposium
Setting the Stage for the Return of Private Capital

Presentations made by moderators and panelists at the 2014 CoreLogic New York Symposium are available below. They are available only to registered attendees (plus local clients and prospects) and accessing them will require a password.

Presentations are available for the following 2014 Symposium sessions:

  1. The Housing and Mortgage Markets are Getting Better—Right? (economic overview)
  2. Bringing Private Capital Back to the Mortgage Market—Choose One from Column A or Column B (technical and political issues hampering return of private capital)
  3. Cue Private Capital—Are We Ready to Take the Stage or Is There More to Do to Be the Best Execution Again? (preparing for best execution)

Please email Allyson Reynolds if you have any questions..