Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

March 28, 2017 - IMFnews

Prepayment Rate on Mortgages in Jumbo MBS Close to Rate on Conforming Loans

BAML suggested that one of the reasons prepayment speeds on jumbos have been relatively slow is the presence of self-employed borrowers…


March 28, 2017 - IMFnews

NYDFS Eliminates Servicing Monitor for Ocwen; Restrictions May be Lifted on Servicing Acquisitions Too

At one point, Ocwen's management said various monitors were costing the company upwards of $80 million a year...


March 24, 2017 - IMFnews

Proposal to Curb ‘Rating Shopping’ Met with Skepticism

Esaki and White propose allowing issuers to choose any number of rating services to submit credit support levels for a particular MBS or ABS, paying a bid-preparation fee for each estimate.


March 24, 2017 - IMFnews

Fitch the 2016 Rating Service King in Both Non-Agency MBS and Non-Mortgage ABS

S&P finished a close second with a 53.6 percent market share.


March 23, 2017 - IMFnews

SFIG Plots Next Steps in Effort to Revive Non-Agency MBS Market

SFIG’s said its RMBS 3.0 task force will be holding calls during the next two weeks to discuss ongoing work in the latest areas of focus…


March 23, 2017 - IMFnews

Home-Equity Lending Up in 2016, but HEL Debt Sinks to 13-Year Low

At the end of 2016, the supply of outstanding home-equity loans fell to $595.4 billion from $607.9 billion the year prior…


March 22, 2017 - IMFnews

Finance of America Commercial Makes Big Push Into Broker Market with ‘Fix & Flip’ Lending

CEO Mark Filler said FoAC is now offering fix-and-flip loans as cheaply as 6.99 percent…


March 21, 2017 - IMFnews

Still Rising: Retail Channel Accounts for 81.6 Percent of Jumbo Originations

Roughly $72.09 billion of jumbo mortgages were originated in the fourth quarter, down 3.4 percent on a sequential basis.


March 20, 2017 - IMFnews

Bayview Packages Thousands of Vintage ‘Daily Simple Interest’ Mortgages into Non-Agency MBS

Bayview issued two similar MBS last year, totaling $467.18 million…


March 17, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


March 17, 2017 - Inside Nonconforming Markets

News Briefs

Freddie Mac is preparing to issue a $639.91 million Whole Loan Securities transaction backed by conforming-jumbo mortgages, according to Moody’s Investors Service. Some 65.9 percent of the mortgages in the transaction were originated by Caliber Home Loans, followed by Wells Fargo Bank with a 19.1 percent share and Quicken Loans with a 10.0 percent share. JPMorgan Chase recently opted to include conforming-jumbo mortgages in a non-agency ... [Includes five briefs]


March 17, 2017 - Inside Nonconforming Markets

Non-QMs Poised for Growth as Refis Decline

As interest rates increase and refinance business shrinks, some lenders are putting an emphasis on non-qualified mortgages. “CashCall Mortgage’s business in refinance has fallen off; it is now targeting a different section of the marketplace,” Joe Tomkinson, chairman and CEO of Impac Mortgage Holdings, said during the nonbank’s recent earnings call. “Now we are bringing a product that is very real estate friendly to the marketplace, and we will see an increase in that.” Most of ...


March 17, 2017 - Inside Nonconforming Markets

Redwood Ramping Up ‘Expanded-Prime’ Activity

More than half of Redwood Trust’s 406 sellers have started offering the company’s “expanded-prime” jumbo product. Company officials said they’re aiming for the Choice product to account for 15.0 percent to 20.0 percent of Redwood’s jumbo volume this year. The firm launched the Choice product in April, allowing mortgages with debt-to-income ratios up to 49.9 percent, loan-to-value ratios up to 90.0 percent or credit scores as low as 661. Choice mortgages tend to have LTV ratios ...


March 17, 2017 - Inside Nonconforming Markets

Galton More Lenient on Certain Jumbo Standards

Galton Funding, a new entrant to the jumbo mortgage-backed security market, allows for jumbos with somewhat looser underwriting criteria than typically used in jumbo MBS issued in recent years. The company noted that its programs are aimed at “underserved” borrowers. Moody’s Investors Service said Galton has two prime loan programs: A+ and A. Both allow for more lenient underwriting than other prime jumbo programs and instead align in some instances with ...


March 17, 2017 - Inside Nonconforming Markets

Bank Holdings of First Liens Increase in 4Q16

Bank and thrift holdings of first-lien portfolios continued to increase at the end of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. Banks and thrifts held $1.93 trillion in first liens at the end of the year, up 0.4 percent from the third quarter of 2016 and up 3.4 percent from the end of 2015. New additions to the portfolios are generally jumbo mortgages along with some loans eligible for sale to the government- ... [Includes one data chart]


March 17, 2017 - Inside Nonconforming Markets

BofA Jumbos Going into MBS

For the second time in five months, mortgages aggregated by Bank of America will be included in a jumbo mortgage-backed security. In both instances, BofA has sold loans to New Penn Financial, with an affiliate of New Penn issuing the MBS. The $280.38 million Shellpoint Co-Originator Trust 2017-1 is scheduled to close at the end of this month. Mortgages aggregated by BofA account for 98.7 percent of the dollar volume of the MBS, according to presale reports by Kroll Bond Rating Agency and ...


March 17, 2017 - Inside Nonconforming Markets

Retail Gains Share of Jumbo Lending in 4Q, Remains Dominant Channel for Production

The retail channel remains the predominant source of jumbo originations, according to an Inside Nonconforming Markets analysis of survey responses collected by Inside Mortgage Finance. Among the top jumbo lenders, more than four out of five jumbos originated during the fourth quarter of 2016 were through the retail channel. The 81.6 percent retail share of jumbo originations was up from a 79.3 percent share in the fourth quarter of 2015 ... [Includes one data chart]


March 14, 2017 - IMFnews

New Penn Packages Mortgages Sourced through Bank of America into New Jumbo MBS

Bank of America initially acquired the mortgages through the bank’s jumbo whole loan purchase program.


March 13, 2017 - IMFnews

CarVal Investors Includes Unique Mix of Loans in $395 Million Non-Agency MBS

In addition to re-performing mortgages, Mill City Mortgage Loan Trust 2017-1 included some home-equity lines of credit and newly originated mortgages.


March 10, 2017 - IMFnews

Bank ABS Portfolios Continued to Shrink in 2016…

Commercial banks and thrifts reported a combined $123.8 billion of ABS on their balance sheets at the end of last year, a 3.7 percent drop from the third quarter…


March 10, 2017 - IMFnews

Non-Agency MBS Participants See a Deal Agent as Adding a ‘Brain’ to Transactions

Clayton Holdings was the first firm to receive an assessment from rating services as a deal agent…


March 9, 2017 - IMFnews

Jumbo MBS Market Looking Relatively Strong as Shellpoint Prepares Another Deal

Yet another new jumbo MBS deal is hitting the market. This time from an affiliate of Shellpoint…


March 9, 2017 - IMFnews

Agencies Nipped More Jumbo Share in 2016

The agency share of total jumbo production reached its highest level in 2009 and 2010, immediately after “emergency” high-cost loan limits were put in place…


March 8, 2017 - IMFnews

Good News for Jumbo MBS Issuers: Investor Demand Doubles (Roughly)

JPMorgan said 50 investors bought into the bank’s latest jumbo MBS. Typically, 20 to 30 buyers line up…


March 7, 2017 - IMFnews

Rating Services Getting (Slightly) More Comfortable with TRID Compliance Issues on Jumbo MBS

Four mortgages from First Republic Bank were subject to limited reviews that didn’t include checks for compliance with TRID.


March 7, 2017 - IMFnews

Jumbo Servicers Post Modest Gains in 2016

Among the top 30, LoanCare had the largest increase to its jumbo servicing portfolio…


March 6, 2017 - IMFnews

Redwood Trust Prepares its Third Jumbo MBS of the Year. Execution Stronger than Whole Loan Sales

Redwood officials note that in recent months pricing for jumbo MBS has been stronger than the bid for whole loan sales…


March 6, 2017 - IMFnews

Plenty of ‘Home Equity’ Now, but Less of a Desire to Tap the ‘House ATM’

Researchers at the Federal Reserve Bank of New York said there’s still plenty of demand for home equity loans and cash-out refis but…


March 3, 2017 - Inside Nonconforming Markets

Average Jumbo Mortgage Interest Rates and Mortgage Performance

A page of jumbo data and the performance of non-agency mortgage-backed securities.


March 3, 2017 - Inside Nonconforming Markets

News Briefs

The $356.40 million jumbo mortgage-backed security JPMorgan Chase issued in February 2014 has performed well, according to Kroll Bond Rating Agency. Since issuance, the rating service said JPMorgan Mortgage Trust 2014-1 has experienced minimal delinquencies, no credit-based loan modifications and no losses. As of the end of January, the MBS had an unpaid principal balance of $202.30 million and one mortgage in the deal was 30 days ... [Includes two briefs]


March 3, 2017 - Inside Nonconforming Markets

CFPB Warns Borrowers About Subprime Loans

Potential mortgage borrowers with bad credit or no credit should proceed with caution if they have been offered a subprime mortgage, according to advice from the Consumer Financial Protection Bureau. The CFPB published a blog post this week focusing on the homebuying process for people with “poor” credit scores. The post, part of a series on home purchase advice, was authored by Megan Thibos, a policy analyst with the CFPB’s mortgage markets team. The post suggested that ...


March 3, 2017 - Inside Nonconforming Markets

Ocwen Working Toward Acquiring Servicing

Limitations spanning more than three years on Ocwen Financial’s ability to acquire servicing could be ending soon. Company officials stress that a resumption of servicing acquisitions will help Ocwen see some benefits from economies of scale. In the three years since the New York Department of Financial Services started preventing Ocwen from acquiring servicing, Ocwen’s portfolio has declined by more than 50.0 percent, hitting an unpaid principal balance of $209.09 billion ...


March 3, 2017 - Inside Nonconforming Markets

Subprime Servicing Down, Delinquencies Creep Up

The total unpaid principal balance of subprime mortgages outstanding continued its slow decline in 2016, ending the year at an estimated $255.0 billion, according to Inside Nonconforming Markets. Subprime performance was mixed in the fourth quarter, with the share of loans past due increasing compared with the previous quarter, according to the Mortgage Bankers Association. Some 14.28 percent of mortgages were past due as of the end of the ... [Includes one data chart]


March 3, 2017 - Inside Nonconforming Markets

New Batch of Contributors to Non-Agency MBS

The two issuers that recently entered the non-agency mortgage-backed security market included loans originated by lenders that haven’t been significant contributors to nonprime MBS or jumbo MBS. The $145.02 million nonprime MBS from Invictus Capital Partners included mortgages from 21 lenders, led by Calculated Risk Analytics with a 26.1 percent share of the dollar volume of loans in the deal. Calculated Risk Analytics does business as Excelerate Capital, a wholesale lender ...


March 3, 2017 - Inside Nonconforming Markets

Deal Agents Ready for MBS, Issuers Holding Off

Documents have been drawn up to define a deal agent’s responsibilities, a number of firms are willing to be deal agents for new non-agency mortgage-backed securities and some investors insist that the investor-friendly role is necessary. But a deal agent has yet to be included in an MBS. Dmitri Rabin, a vice president of Loomis, Sayles & Company, an investing firm that has pushed the deal-agent concept, conceded that the function doesn’t provide much value in the current environment ...


March 3, 2017 - Inside Nonconforming Markets

Jumbo Servicers Post Increases in 2016

Most major jumbo servicers increased their portfolios in 2016, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 30 servicers handled an estimated $921.10 billion in jumbo mortgages as of the end of the year, up 8.7 percent from the end of 2015. Wells Fargo was the top jumbo servicer, with a $279.97 billion portfolio at yearend. While Wells steadily built up its jumbo servicing throughout the year, it lost some ... [Includes one data chart]


March 3, 2017 - Inside Nonconforming Markets

Galton Brings Looser Underwriting to Jumbo MBS

An affiliate of Galton Funding is preparing to issue a jumbo mortgage-backed security with looser underwriting standards than the super-prime deals that have dominated the jumbo market since the financial crisis. DBRS and Moody’s Investors Service assigned AAA ratings to the planned $254.55 million Galton Funding Mortgage Trust 2017-1. The senior tranche of the MBS will include credit enhancement of 13.50 percent, which is much higher than the 5.00 percent credit enhancement ...


March 3, 2017 - Inside Nonconforming Markets

Nonprime MBS from Angel Oak Rated AAA

A planned nonprime mortgage-backed security from an affiliate of Angel Oak Companies received AAA ratings from DBRS and Fitch Ratings. The $146.47 million deal will include credit enhancement of 46.65 percent on the senior tranche. Fitch said the AAA rating for the deal reflects the satisfactory operational review of the contributing lenders conducted by the rating service, 100.0 percent loan-level due diligence review with no material findings, a “Tier 2” representation-and-warranty framework ...


March 3, 2017 - Inside Nonconforming Markets

Jumbo MBS Issuers Prosper in Small Market, Growth Not Expected Soon

The two major players in the jumbo mortgage-backed security market have seen strong demand for their issuance in recent months. But much broader factors are likely to limit issuance, including ongoing uncertainty regarding reform of the government-sponsored enterprises. Marc Simpson, an executive director at JPMorgan Securities, said 50 investors bought into the bank’s latest jumbo MBS, a $1.03 billion issuance. He said it was a “highwater mark,” as 20 to 30 investors typically ...


March 3, 2017 - IMFnews

What We’re Hearing: What We Talk About When We Talk About Financial Lunacy / Should Apple Buy Fannie and Freddie? / The Coming Boom in Mortgage Delinquencies in the Washington, DC, Area / FannieMae.com?

Go figure: An "app" company called Snap that may never make a nickel is now worth more than Fannie Mae and Freddie Mac...


March 3, 2017 - IMFnews

CFPB Tells Consumers: If You’re Offered a Subprime Mortgage, Beware

CFPB analyst Megan Thibos reminds consumers that, “During the foreclosure crisis, many borrowers with subprime mortgages faced sharply increased mortgage payments and were unable to make those payments.”


March 3, 2017 - IMFnews

SFIG Vegas Turnout Tops 6,700, but That Doesn’t Mean Investors Will Cozy Up to Non-Agency MBS

Issuance of non-agency MBS backed by new originations continues to be limited…


March 2, 2017 - IMFnews

Angel Oak Hits the Market with a Rated Nonprime MBS Deal

The bank statement loans and TRID exceptions prompted Fitch to apply higher loss severities to the MBS, which play a role in credit enhancement levels…


March 1, 2017 - IMFnews

Altisource Residential Posts $228 Million Loss for 2016; CEO Calls It a ‘Strong’ Year

Altisource Residential said its goal is to build a large portfolio of SFRs “targeted to operate at a best-in-class yield.”


March 1, 2017 - IMFnews

Non-Agency MBS Issuers Caution Against Certain Dodd-Frank Rollbacks; They Like the Legal Protection of the ATR

SFIG Executive Director Richard Johns suggested that instead of removing requirements for risk-retention, policymakers could provide capital relief for issuers that retain risk on their securities, rewarding “good behavior.”


March 1, 2017 - IMFnews

Fannie/Freddie Retained Portfolios Continued Shrinking in 2016 – Mostly by Shedding MBS

Fannie Mae cut its portfolio of Fannie MBS by 42.9 percent last year...


February 27, 2017 - IMFnews

Revised GOP Reform Plan Would Significantly Loosen Rules for Rating Services

With Republicans now in control of the White House and both houses of Congress, Hensarling plans to make even more cuts to regulations for rating services.


February 27, 2017 - IMFnews

SFIG Vegas Show Opens, Record Attendance Likely, but Plenty of Uncertainty for Non-Agency MBS Market

The nonagency/nonprime MBS market is expected to get some attention at the SFIG show, but not much…


February 24, 2017 - IMFnews

Looser Underwriting on Jumbos Backing Galton’s New MBS

Moody’s said many of the contributors to the MBS are small, regional entities that lack the sophistication of larger, more established originators.


February 24, 2017 - IMFnews

The Time is Right for a Boom in Servicing Sales. However…

Meanwhile, selling Ginnie Mae receivables is still a difficult task…


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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