FTN Financial Presented Expert MBS Market Update at March Meeting
Flood Disaster Protection Compliance Session Presented by RSK
The Chapter’s March Mini-Session featured an expert update on the mortgage-backed securities market presented by Walter Schmidt, CFA, Senior Vice President and Manager of Mortgage Strategies from FTN Financial Capital Markets based in Chicago. The program was entitled MBS Market Update: Reconsidering the Fed. Walt described the current economic conditions affecting the MBS market as well as the strategies employed by the Fed to reduce market price and rate volatility. Walt noted that bank holdings of MBS securities has “flat-lined” since 2012 and that money managers have turned cautious in 2013. He stressed four main themes affecting the market while waiting out the current round of uncertainty:

· The Fed has BEGUN to unwind extraordinary assistance.
· Certainty about Fed tapering has REDUCED VOLATILITY.
· Curve in 2014 will likely remain STEEP, but next BIG MOVE is for a FLATTER CURVE.
· CONVEXITY and ROLLDOWN now, wider windows for 2015 and beyond.

Walter Schmidt from FTN Financial Capital Markets presented a mortgage-backed securities update at the March Mini-Session.
Chapter Officers join the contingent of Members at the mortgage-backed securities presentation at the March Mini-Session.
The Chapter’s March Dinner Meeting was held at the Stony Hill Inn in Hackensack, NJ on Wednesday, March 19, 2014. The MBS mini-session was presented at 4:30pm and admission is free to Chapter Members who also register for the featured evening presentation. Mini-Session attendees adjourned to the cocktail hour to enjoy their favorite beverage along with a fine array of hors d'oeuvres served by the cordial Stony Hill Inn staff. Members and guests then enjoyed a superb full course dinner.

While everyone relaxed and relished coffee and dessert, Asaad Faquir, Director at RKS Compliance Solutions presented the evening session entitled Flood Disaster Protection Compliance. Asaad described the risks posed by financial institutions when adequate flood insurance is not maintained on a borrower’s property. He pointed out the severity of various flood events ranging from flash floods to river and coastal flooding. He discussed the provisions of the Flood Disaster Protection Act and noted the importance of evaluating the adequacy of flood insurance on all mortgaged properties. Asaad emphasized that regulatory compliance requirements have been stepped up, penalties for non-compliance have been substantially increased and the annual penalty limitations that were capped at $100,000 per loss have now been removed.

He stressed the importance of evaluating the amount of insurance coverage required for each subject property and maintaining documentation in each file indicating that coverage meeting the minimum statutory guidelines is maintained. Asaad answered several challenging questions from the Membership and recommended courses of action that institutions should consider.

Make your plans to attend the Spring Half-Day Seminar on Friday April 18, 2014 to be held at the Stony Hill Inn in Hackensack. The program will run from 9:00AM until Noon. Breakfast will be served beginning at 8:00AM and lunch will served after the last session.

Topics and Speakers

Flood Disaster Protection Compliance

Asaad Faquir Photo
Asaad Faquir
RSK Compliance Solutions



Slide Presentation

MBS Market Update:
Reconsidering the Fed

Walter Schmidt Photo
Walter Schmidt, CFA
Senior Vice President
FTN Financial Capital Markets



Slide Presentation

Featured dinner speaker Asaad Faquir presented Flood Disaster Protection Compliance at the Chapter's March meeting.
Bob Pabst presented the traditional invocation at the Chapter's March dinner meeting.