Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Home / Daily Dose / What is the Future of Freddie Mac’s Risk Transfer Policy? As Freddie Mac announces its intent to sell its eighth and final scheduled offering this year of Structured Agency Credit Risk (STACR) debt notes, pending market conditions, DS News takes a look back at the STACR offerings as well as what is in store for 2017.The GSE states that it has led the market in introducing new credit risk-sharing initiatives with STACR, Agency Credit Insurance Structure (ACIS) and Whole Loan Securities (WLS(SM)), and was the first agency to market these types of credit risk transfer transactions. The company has since grown its investor base to more than 200 unique investors, including insurers and reinsurers. Since 2013, the company has transferred a significant portion of credit risk on nearly $570 billion of UPB on single-family mortgages.“The STACR offering is a part of a broader effort on behalf of Freddie Mac to transfer credit risk from Freddie Mac to private investors,” says Mike Reynolds, VP of Credit Risk Transfer for Freddie Mac.STACR debt notes are unsecured and unguaranteed bonds issued by Freddie Mac whose principal payments are determined by the delinquency and principal payment experience on a STACR Reference Pool consisting of recently acquired single family mortgages from a specified period. Freddie Mac transfers credit risk from the mortgages in the Reference Pool to credit investors who invest in the STACR debt notes.“We have a range of goals that we’re trying to achieve,” says Reynolds. “First and foremost, we’re looking to transfer credit risk into the hands of private capital. Second, we’re looking to establish a broad and deep investor base to be able to sustain this credit risk transfer today and into the future. Then third, we’re looking to minimize disruptions to the current origination and, specifically, the TBA market.”In this final STACR offering, Citigroup Global Markets and Barclays Capital will serve as co-lead managers and joint bookrunners.Additionally, the GSE reports that with the STACR 2016-HQA4 offering of loans with LTVs ranging from 80 to 97 percent, Freddie Mac holds the senior loss risk in the capital structure and a portion of the risk in the Class M-1, M-2 and M-3 tranches, and the first loss Class B tranche.With regard to what the future of the STACR offerings holds, Reynolds states that Freddie Mac expects to see the same as what has been seen in 2016.“There’s a focus on getting credit protection on new originations (30-year fixed rate, 60 to 97 LTVs),” says Reynolds. “We expect to be credit protecting the same types of collateral with roughly the same volumes next year.” Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Tagged with: Credit Risk Transfer Freddie Mac STACR Previous: Florida Case May Cause Both Borrowers and Servicers Difficulty Next: FHFA Announces Agency Goals for 2017 About Author: Kendall Baer The Week Ahead: Nearing the Forbearance Exit 2 days ago Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Credit Risk Transfer Freddie Mac STACR 2016-10-03 Kendall Baer Demand Propels Home Prices Upward 2 days ago Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News. Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, News October 3, 2016 1,175 Views What is the Future of Freddie Mac’s Risk Transfer Policy? Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Related Articles Subscribe
ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr by: Gillian HamesRewardStream recently partnered with Demand Metric to conduct a survey on the current state of referral marketing. Our goal for this study was to understand the interest in, and the success of, referral marketing in order to gain insights from which to derive our own referral marketing best practices.This study’s participants were primarily marketers in both B2B and B2C organizations. Participants represented a wide range of industry affiliations and are with companies whose total employment ranges from less than 25 to more than 15,000 employees. Responses were collected from those who reported having a referral marketing program and those that did not.For those that did report having a program, the study investigated its parameters and effectiveness. For those that reported not having a referral marketing program, the reasons why were investigated, along with future plans for implementing one.You can download the full report here. continue reading »
Following the sales, Adlan said the company would continue to use the towers by leasing it back from the buyers for 10 years. Such a move would help the company save and increase its efficiency significantly in the long run.By selling the towers, the publicly listed company could also reduce its operational costs and the risks that might come from the towers.“This way, we don’t have to spend money on the towers’ maintenance, land lease, licensing and pay compensation to the communities around them,” he explained, adding that with the sales of the towers, the company could focus on the telecommunication service.Adlan said the company planned to use proceeds from the towers’ sales to support this year’s capital expenditure and working capital. A similar move was also made by publicly listed telecommunication provider Indosat last October, during which it sold 3,100 telecommunication towers for Rp 6.39 trillion to PT Dayamitra Telekomunikasi (Mitratel) and Protelindo.Indosat’s chief executive officer, Ahmad al-Neama, said the sales would allow the company to accelerate the implementation of its strategy and continue to ensure the best experience for its customers.Meanwhile, XL Axiata’s president director Dian Siswarini said the company had allocated Rp 7.5 trillion in capex this year. Around 80 percent of the allocation will be used to expand its telecommunication network, specifically its 4G network, so that 95 percent of the population could be covered by the service.She said the company would focus on expanding to certain cities and regencies, especially outside of Java, that had good business prospects.“The expansion will be carried out to cities and regencies that can give a return on investment in three to four years,” said Dian. The company’s group head of technology strategy and architecture, I Gede Darmayusa, said it would also expand its fiber optic network in the country’s main cities to increase mobile data capacity.This year, the company planned to expand its fiber optic network to 100 cities both in Java and outside of the island, he said. The expansion would increase its fiber optic network coverage to 70 percent, covering 300 cities. “This will help us encourage digital connectivity among our customers,” he said.Dian also said the company planned to use artificial intelligence and machine learning to personalize mobile data packages. The strategy was expected improve service and increase sales.“Hopefully with such a strategy , our financial performance will be better than the overall industry,” sheThe company booked a 15 percent year-on-year (yoy) increase in revenue to Rp 25.15 trillion in 2019 and a 17 percent yoy increase in earnings before interest, tax, depreciation and amortization to Rp 9.97 trillion. After months of negotiations, telecommunication firm XL Axiata has agreed to sell its 2,782 telecommunication towers to two local companies and plans to use the proceeds to expand its 4G coverage, as well as to improve its mobile data network quality.XL Axiata finance director M. Adlan bin Ahmad Tajudin said in Jakarta on Wednesday that 1,728 towers had been sold to PT Profesional Telekomunikasi Indonesia (Protelindo) and 1,054 towers to PT Centratama Telekomunikasi Indonesia.The agreement on the sale of the towers was signed in Jakarta on Feb. 7. “We will raise Rp 4.05 trillion (US$ 296.55 million) from the sales and expect to close the deal by the end of the first quarter,” he said during a press briefing event in Jakarta. Topics :
The Supreme Audit Agency (BPK) has been auditing the financial system authority and several state companies as part of its investigative audit on state-owned insurer PT Asuransi Jiwasraya following the Attorney General’s Office’s (AGO) decision to name more suspects in the Jiwasraya corruption case.Chairman Agung Firman Sampurna said on Monday the investigative audit had been extended beyond the previous audit and now included investigations into the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), the State-Owned Enterprises (SOEs) Ministry and other state-owned companies linked to Jiwasraya.“We’re encountering some difficulties in the audit [due to the COVID-19 pandemic], but we hope we can complete the audit by the end of this year,” he said. It also named an OJK official, identified only as FH, a suspect in the case. He was suspected of abuse of power, which allegedly paved the way for Jiwasraya’s investment mismanagement during FH’s tenure as OJK department head of capital market monitoring from 2014 to 2017.Agung also said the agency was open to the possibility of pursuing further investigations into economic losses related to the Jiwasraya case in the future.“If law enforcers link this case to something much bigger, there’s a possibility that we may also calculate the loss to the economy,” he said.Agung on Monday also defended the agency’s audit on Jiwasraya and denied an accusation that he, the BPK vice chairman and the agency were protecting certain parties in the audit.“According to the audit procedure, law enforcers will have to submit a request to the BPK to calculate the amount of state losses [from this case],” Agung told the press in Jakarta. “With this logic, it would be silly to accuse the BPK, its chairman and vice chairman of protecting certain parties.”The statement came after Benny Tjokrosaputro, the defendant in the corruption case, accused the agency of protecting conglomerate Bakrie group in the Jiwasraya case.“The BPK chairman and vice chairman are covering up [Bakrie group’s involvement and] they are definitely Bakrie’s cronies,” Benny said before attending a hearing at the Central Jakarta District Court last Wednesday, as reported by tempo.co.Benny also called on the AGO to uncover Bakrie group’s involvement in the stock pump-and-dump scheme, which caused Jiwasraya to book losses since 2006, Kompas reported last Friday.The insurer was known to have invested in two of the group’s publicly listed entities, property developer PT Bakrieland Development and investment company PT Bakrie & Brothers. Both stocks have been priced at Rp 50 apiece since 2018.However, Jiwasraya president director Hexana Tri Sasongko said the insurer had long sold the stocks before he was appointed as the president director in May 2018.Due to the accusation, Agung said the BPK planned to report Benny to the National Police’s Criminal Investigation Department (Bareskrim) for defamation.Topics : Although the investigative audit was less likely to uncover additional losses from Jiwasraya’s investment mismanagement, the agency expressed hope that the result could reveal where the premium had gone to.It also expected to create a systemic improvement to protect customers from potential fraud in the financial services industry in the future and to improve public trust in Indonesian assets.Jiwasraya is accused of mismanagement and corruption when it invested most of its premium revenue from the JS Saving Plan, one of the company’s insurance products, in pumped-and-dumped stocks. As a result, it failed to pay out Rp 16 trillion (US$1.1 billion) in matured policies due in February to its policyholders.The AGO on Thursday accused the 13 companies of mismanaging or laundering the premium revenue collected by Jiwasraya from 2014 to 2018. They allegedly caused Rp 12.35 trillion of state losses, or 73.46 percent of the total Rp 16.81 trillion in state losses as previously audited by the BPK.