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Affordable housing caught in a Texas showdown

[ad_1] The popularity of socially responsible investing in areas such as affordable housing has run headlong into the nation’s culture wars in Texas.  Four leading municipal bond underwriters recently chose to pull out of the Lone Star State’s municipal bond market — among the biggest in the nation — on the heels of two laws that went into effect in September.  Texas Senate Bill 19 (SB 19) requires companies doing business with state agencies, including bonding authorities, to certify that they do not “discriminate against the firearm or ammunition industries,” according to a research report issued by the Kroll Bond Rating Agency. SB 13 similarly seeks to protect Texas’ energy industry by barring “state investments in companies that restrict business activities with the oil and gas industry,” Kroll reports. In reaction to SB 19, JPMorgan Chase, Citigroup and Bank of America recently elected to pause participating in the Lone Star State’s municipal bond market because “they could not certify compliance with the new law,” according to Kroll. All three have adopted investment or other policies in the wake of mass shootings that set restrictions on the firearms industry. A recent report by Bloomberg indicates Goldman Sachs, likewise, has elected to pause activity in the Texas’ municipal bond market. The affordable-housing market in Texas is supported, in part, by tax-exempt bonds issued by the Texas Department of Housing and Community Affairs (TDHCA) and the nonprofit Texas State Affordable Housing Corp. (TSAHC). Their programs help to fund first-time homebuyer initiatives as well as single-family and multifamily affordable-housing projects, among other efforts.  This content is exclusively for HW+ members. Start an HW+ Membership now for less than $1 a day. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis Exclusive access to the HW+ Slack community and virtual events HousingWire Magazine delivered to your home or office Become a member today Already a member? log in The post Affordable housing caught in a Texas showdown appeared first on HousingWire. [ad_2] Source link

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Mortgage loan-trading platforms prepare for fall in volume

[ad_1] The historic mortgage boom spurred by the pandemic hasn’t just been a blessing for lenders – the slew of mortgage loan-trading platforms have also reaped the rewards of historic origination volume. But new regulatory actions and rising interest rates threaten to cut the party short if they can’t adapt. The companies behind these platforms – ranging from stalwarts like Black Knight and MCT, to startups such as Maxex and Maxwell – essentially connect lenders and investors, and also match them with critical services such as paper standardization and due diligence. On these platforms, originators can lock down the best loan price from various buyers, typically asset managers and institutional investors. “In 2021, we’ve had a record volume. The last 12 months have been great,” said Tom Pearce, CEO of Maxex, an Atlanta-based fintech company founded in 2016. Maxex claims an average of $1 billion per month is traded on its platform, which is focused primarily on residential non-agency jumbo loans. Loans traded through the exchange comprised approximately 10% of all jumbo securitization over the past 12 months, the company said. Roughly 60% of mortgages are packaged and sold to investors, while the remaining is held in clients’ portfolios. Since 2016, the loans traded through the platform have been involved in 94 securitization deals. This content is exclusively for HW+ members. Start an HW+ Membership now for less than $1 a day. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis Exclusive access to the HW+ Slack community and virtual events HousingWire Magazine delivered to your home or office Become a member today Already a member? log in The post Mortgage loan-trading platforms prepare for fall in volume appeared first on HousingWire. [ad_2] Source link

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