Alt A Mortgage

Browse articles from all of our Newsletters related to Alt A Mortgage.

November 21, 2014 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


November 21, 2014 - Inside Nonconforming Markets

Investment in Nonprime Lenders Heats Up

Bond investing giant PIMCO has made an investment in Citadel Servicing, a small but fast-growing nonprime lender that could wind up originating $400 million in non-agency residential loans next year. Industry officials confirmed the investment to Inside Nonconforming Markets, although neither company would comment. One source close to the transaction said PIMCO’s stake in Citadel is under 30 percent. The lender, which raised $200 million in seed money early last year, has been funding ...


November 21, 2014 - Inside Nonconforming Markets

GSEs Unload Some Nonprime MBS Holdings

The nonprime mortgages held by the government-sponsored enterprises continue to run off, though the GSEs have sold some of their holdings of nonprime mortgage-backed securities in the past year, according to industry analysts. Fannie Mae and Freddie Mac held a combined $238.83 billion in nonprime mortgages as of the end of the third quarter of 2014, according to a new analysis by Inside Nonconforming Markets. Purchased/guaranteed mortgages ... [Includes one data chart]


November 21, 2014 - Inside Nonconforming Markets

Subprime Servicing Business Draining Away

The subprime servicing business continued to decline during the third quarter of 2014, and the sector’s top player faces big challenges in trying to get any bigger. The supply of subprime mortgage servicing outstanding fell to an estimated $352 billion at the end of the third quarter, according to a new Inside Nonconforming Markets ranking. That was down 5.9 percent from the end of June and off 15.8 percent from a year ago. Ocwen Financial remained the top servicer ... [Includes one data chart]


November 14, 2014 - Inside MBS & ABS

Fannie, Freddie MBS Portfolios Will Continue Shrinking Following Profitable Third Quarter

Fannie Mae and Freddie Mac continued to trim their retained holdings of MBS and unsecuritized mortgages in keeping with their conservatorship mandate as the two government-sponsored enterprises each posted a profit during the third quarter of 2014. The two GSEs ended September with a combined $851.71 billion in mortgage-related holdings, down 2.4 percent from the previous quarter. Compared to a year ago, their combined mortgage portfolio was down 16.0 percent and down 46.5 percent from the $1.592 trillion the two firms held in the fourth quarter of 2008 shortly after being placed in government conservatorship. One of the conditions of the conservatorship the GSEs entered six years ago was...[Includes one data chart]


November 13, 2014 - Inside Mortgage Finance

Mixed Results for Publicly Traded Nonbanks: Ocwen, Walter, PHH in the Dog House; PennyMac and Redwood Show Promise

Although residential lenders are coming off a better than expected production quarter – and enjoying a decent last three months of the year – analysts and investors seem undecided on whether there’s opportunity in the market or it’s time to stay on the sidelines. Several high profile publicly traded shops that are considered “high touch” specialists – Nationstar Mortgage, Ocwen Financial and Walter Investment – continue to trade at steep discounts to their 52-week highs with all three facing possible class-action lawsuits from angry investors who’ve seen billions of dollars in stock equity evaporate over the past year. And then there’s...


November 7, 2014 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


November 7, 2014 - Inside Nonconforming Markets

Ocwen Sets Sights on Non-Agency Originations

With growth via acquisitions of servicing portfolios on hold, Ocwen Financial is pursuing a number of different initiatives, including originations of non-agency mortgages. The nonbank primarily known for servicing high-touch mortgages is currently testing originations of jumbo mortgages and working toward originating nonprime mortgages. “The business is building a robust new product pipeline and is currently in the market testing a new jumbo mortgage product,” Michael Bourque ...


November 7, 2014 - Inside Nonconforming Markets

Two Harbors Sees Promise in Non-Agency Lending

Two Harbors Investment is working to increase its non-agency conduit activity, launching a nonprime product along with a low-downpayment jumbo for high-quality borrowers. Officials at the real estate investment trust said Two Harbors also plans to be a regular issuer of non-agency mortgage-backed securities. “It has been clear to us for some time that the market has a need for products like this, and we are excited to be able to extend our reach as a capital provider to these segments ...


October 24, 2014 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


October 24, 2014 - Inside Nonconforming Markets

Deephaven Sees Promise in Nonprime MBS

Boosters of the non-agency market are trying to solve too many problems at once, according to Matthew Nichols, a managing partner at Deephaven Mortgage. He said work by various groups to set standards and address the problems confronting the non-agency market is an effort to create a world where non-agency MBS never take a first loss. “We are taking a simpler approach, accumulating nonprime, non-QM mortgages and securitizing them,” Nichols said this week at ...


October 17, 2014 - Inside Mortgage Trends

Performance of Nonprime Borrowers Improving

With most “easy” refinance business long gone, some lenders have turned their attention to lower credit-quality borrowers. New research from Fair Isaac suggests that borrowers with the lowest credit scores are showing improved performance, helping to ease some concerns about lending to such borrowers. Ethan Dornhelm, principal scientist at Fair Isaac, said average FICO scores tend to decline during an economic downturn, as consumers have more difficulty meeting loan obligations ...


October 10, 2014 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


October 10, 2014 - Inside MBS & ABS

Non-Agency MBS Market Revs Up in 3Q14; Even the Jumbo Market Showed Some Life

Thanks to a heavy supply of scratch-and-dent deals and a rebound in jumbo mortgage securitizations, new issuance in the non-agency MBS market jumped by 57.4 percent in the third quarter of 2014, according to a new Inside MBS & ABS analysis and ranking. A total of $8.99 billion of non-agency MBS were issued during the third quarter, a major increase from the $5.71 billion issued in the previous three-month period. Year-to-date issuance was still off 27.3 percent from the first nine months of 2013, and it is doubtful that annual volume this year will top 2013’s total when the year is over. Issuance of prime non-agency MBS in the third quarter was...[Includes three data charts]


Poll

What is it going to take to convince lenders to loosen the credit box (i.e., remove underwriting overlays)?

The recent rep and warranty changes announced by the Federal Housing Finance Agency should go a long way in protecting lenders from future buybacks and help expand mortgage credit.
There won’t be any significant elimination of underwriting overlays until the government stops seeking huge mortgage-related penalties and settlements from lenders.
There shouldn’t be any expansion of the mortgage credit box since looser underwriting is what caused the recent mortgage crisis.

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