Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

September 26, 2016 - IMFnews

MBA Task Force Proposes Standardized Loan Mod Program to Replace HAMP

The task force consists of 20 MBA member companies, led by Alex McGillis of Quicken Loans and Erik Schmitt of JPMorgan Chase.


September 26, 2016 - IMFnews

Interest-Only Originations Spiked 45 Percent in 2Q; PHH Mortgage a Standout

Morgan Stanley was offering a 5/1 IO ARM with an interest rate of 3.850 percent for loan amounts below $1 million…


September 23, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


September 23, 2016 - Inside Nonconforming Markets

News Briefs

CORRECTION: Redwood Trust’s Choice program doesn’t allow for stated-income documentation, as originally reported in the Sept. 9, 2016, issue of Inside Nonconforming Markets. And Redwood does allow underwriting exceptions for Choice mortgages, a change that was made after the program was introduced. The baseline conforming loan limit for Fannie Mae and Freddie Mac will likely go up to about $422,000 in 2017, according to an Inside ... [Includes four briefs]


September 23, 2016 - Inside Nonconforming Markets

Ocwen Dominates Initial Streamline HAMP Mods

Ocwen Financial accounted for slightly more than half of the modifications completed under the new Streamline Home Affordable Modification Program offering, according to the company. Streamline HAMP mods are only available for non-agency mortgages. The program is aimed at borrowers who meet general HAMP eligibility criteria but haven’t completed a loan mod application by the time their loan is 90 days delinquent. It’s streamlined in that no income documentation is ...


September 23, 2016 - Inside Nonconforming Markets

No Delinquencies on Sterling Bank-Statement Loans

Sterling Bank & Trust does limited income documentation under its bank statement program but the bank said there have been zero delinquencies on the nearly $1.00 billion in such loans the bank has funded in the past five years. Some $33.2 million in loans from Sterling’s Advantage Home Ownership Program were included in the $217.0 million non-agency mortgage-backed security issued by Lone Star Funds last week. Rating reports on the MBS by DBRS and Fitch Ratings provided ...


September 23, 2016 - Inside Nonconforming Markets

Non-QM Lenders See Plenty of Room for Growth

Originations of non-qualified mortgages could reach $100.0 billion a year, according to officials at three prominent nonprime lenders. Since QM standards from the Consumer Financial Protection Bureau took effect at the start of 2014, non-QMs such as jumbo mortgages with interest-only terms have predominantly gone to affluent borrowers. However, officials at Angel Oak Mortgage Solutions, Deephaven Mortgage and Citadel Servicing see promise in originations for ...


September 23, 2016 - Inside Nonconforming Markets

Sample Deal-Agent Agreement Drafted for MBS

An investor-led group of participants in the non-agency mortgage-backed security market released a sample deal-agent agreement last week. The investors said the agreement can help reform non-agency MBS practices and increase issuance. Some investors have balked at buying new non-agency MBS until significant reforms are put in place. As early as July 2008, the American Securitization Forum started work on reforming the market and the Structured Finance Industry Group ...


September 23, 2016 - Inside Nonconforming Markets

Improved Pricing on Latest Nonprime MBS

The nonprime mortgage-backed security issued last week by Lone Star Funds priced at tighter spreads than the deal the company issued in June, indicating increased demand among investors. The $217.00 million COLT 2016-2 was also larger than the previous $161.40 million deal from Lone Star. According to Deutsche Bank Securities, spreads of A-1 tranche and A-2 tranche in COLT 2016-2 were respectively priced at 130 basis points and 175 bps, significantly tighter than ...


September 23, 2016 - Inside Nonconforming Markets

IO Originations Increase in 2Q, Led by PHH

Originations of interest-only mortgages increased significantly in the second quarter of 2016, particularly at PHH Mortgage, according to a new ranking by Inside Nonconforming Markets. A group of 12 lenders had $12.65 billion in IO originations in the second quarter, up 44.7 percent compared with the previous quarter. A large amount of the increase in volume was driven by PHH, which more than doubled its IO originations in that span. PHH had $6.25 billion ... [Includes one data chart]


September 23, 2016 - Inside Nonconforming Markets

Jumbo MBS Issuance Picks Up With Chase Deal; Strong Demand for Whole-Loan Sales

JPMorgan Chase is set to end another lull in the issuance of jumbo mortgage-backed securities. The $395.40 million JPMorgan Mortgage Trust 2016-3 is scheduled to be issued next week, according to a presale report from Fitch Ratings. The most recently issued jumbo MBS priced in mid-August and was also from Chase. Only two firms with active conduits have issued jumbo MBS this year: Chase and Redwood Trust. Two Harbors Investment and WinWater Home Mortgage issued ...


September 23, 2016 - IMFnews

The New Breed of Nonprime Lenders See Plenty of Room for Growth

Tom Hutchens, SVP of sales and marketing at Angel Oak, said originations of nonprime non-QMs have predominantly been purchase mortgages. However, refinance activity is starting to increase…


September 22, 2016 - IMFnews

SEC Charges Against Hedge Fund Chief Include Allegations Tied to Altisource Investment

Altisource’s stock price declined by 6.4 percent to $30.77 per share shortly after the charges were announced, but the stock has rebounded somewhat…


September 20, 2016 - IMFnews

Short Takes: The Wells Fargo Senate Barbeque / The Scandal’s Effect on Wells’ Mortgage Business? / Hats Off to the Los Angeles Times / Sen. Warren Slams Stumpf / Jumbo Update

Will a potential residential mortgage customer bolt Wells Fargo because they can’t trust the bank’s employees, including its retail loan officers?


September 20, 2016 - IMFnews

JPM Prepares Another Jumbo MBS, First Deal in More than a Month

Despite improvement in securitization returns, jumbo whole loan sales are still more profitable, KBW said.


September 19, 2016 - IMFnews

Deal Agent Concept for Non-Agency MBS Closer to Reality with Release of Sample Document

However, the sample deal agent agreement doesn’t address one of the remaining controversial issues: how much to pay for their services.


September 16, 2016 - IMFnews

What We’re Hearing: How Much Will the Brits Wind Up Paying the FHFA? / Maybe Elton and McCartney Can Help / Remember Lehman Brothers? / What Will Donald Trump do with Fannie Mae and Freddie Mac? / JPM Promotes Three

And since RBS is essentially owned by the British government, any settlement money will indirectly come from U.K. taxpayers. Who knows, maybe Adele, Paul McCartney and Elton John can chip in…


September 16, 2016 - IMFnews

Impac Prices ‘Add-on’ Offering of Stock at $13 a Share; Stock Gets Smacked

Impac presently has a market capitalization rate (stock price multiplied by number of shares) of $167.6 million.


September 16, 2016 - IMFnews

Guess Who Benefits from a Rate Rise? Answer: Nonprime Lenders

What’s the market potential for nonprime/non-QM lending? Maybe $100 billion a year…


September 16, 2016 - IMFnews

Bank Holdings of Non-Mortgage ABS Declined Again in 2Q16; Market Grew Slightly

Banks held about 18.6 percent of total ABS outstanding.


September 16, 2016 - IMFnews

Who Controls the Jumbo Market? Answer: Retailer Lenders, By Far

The analysis, the first of its kind, was based on new Inside Mortgage Finance surveys that drew results from a broad sample of banks and nonbanks of all size classifications.


September 15, 2016 - IMFnews

Short Takes: Even Under Trump, the CFPB May Be Invincible / Five Years of Abuses? / Warehouse Money Available for Non-QM? / The Wild, Wild West / PIMCO-Owned Lender Hires Ex-BOK Official

Warehouse money is available from commercial banks for nonprime home mortgages, but...


September 15, 2016 - IMFnews

Boom Times Ahead for Nonprime. And Yes, the Megabanks are Staying Home

All three panelists expressed the view that the nonprime market is safe from competition from the megabanks...


September 15, 2016 - IMFnews

Lenders Fund $53.5 Billion of Home-Equity Loans in 2Q16, Best Showing Since the Financial Crisis

Meanwhile, as home equity originations improve, the outstanding supply of home-equity debt continues to decline.


September 13, 2016 - IMFnews

Non-Agency Lenders Look to Investment Properties

Cash-flow underwriting for mortgages on investment properties also may present regulatory concerns…


September 12, 2016 - IMFnews

Large Gain in Wholesale Originations at Nonprime Lender Angel Oak

Angel Oak also has a much smaller division, Angel Oak Prime Bridge, that originates nonprime mortgages for investment properties.


September 12, 2016 - IMFnews

Bank-Retained Mortgage Portfolios Keep Growing; Few Jumbos Going into MBS

Meanwhile, while the jumbo securitization rate during the quarter was a paltry 0.8 percent…


September 9, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


September 9, 2016 - Inside Nonconforming Markets

News Briefs

A $6.20 billion portfolio backed largely by jumbo mortgages originated in recent years was sold last week, according to Interactive Data. The portfolio appears to have been sold by Premium Point Investments, though the hedge fund wouldn’t confirm that. Premium Point backed WinWater Home Mortgage, which stopped issuing jumbo mortgage-backed securities earlier this year. Impac Mortgage Holdings announced this week an offering of 2.5 million shares ... [Includes two briefs]


September 9, 2016 - Inside Nonconforming Markets

Ocwen Fails More Metrics Under Settlement

Ocwen Financial failed two metrics under the national mortgage settlement involving force-placed insurance, according to a report this week by the settlement’s monitor. The failures related to activity in the fourth quarter of 2015. The servicer had a 24.2 percent error rate on the timeliness of force-placed insurance notices, well above the 5.0 percent error rate allowed under the settlement. Ocwen said most of the errors were attributable to the implementation of a new ...


September 9, 2016 - Inside Nonconforming Markets

Non-Agency Lenders Look to Investment Properties

A number of non-agency lenders are looking to originate mortgages for investment properties using a debt-to-income ratio based on income from the property rather than the borrower’s income, according to Moody’s Investors Service. “Using property DTI underwriting on loans secured by single investment properties introduces risks stemming from the lack of visibility on a borrower’s other debt obligations relative to a steady source of income that lenders can ...


September 9, 2016 - Inside Nonconforming Markets

Redwood Plots Growth with ‘Choice’ Program

The looser underwriting standards Redwood Trust rolled out earlier this year for jumbo mortgages are aimed at aggregating loans that banks won’t necessarily acquire, according to officials at the real estate investment trust. Redwood introduced its “Choice” program in April, allowing for credit scores as low as 661, debt-to-income ratios as high as 49.99 percent and combined loan-to-value ratios up to 90.0 percent. The characteristics aren’t all allowed on the same loan. For a ...


September 9, 2016 - Inside Nonconforming Markets

Large Gain in Wholesale Originations at Angel Oak

Angel Oak Mortgage Solutions has significantly increased its nonprime wholesale lending this year, according to an offering document for the $132.65 million nonprime mortgage-backed security recently issued by Angel Oak Capital Advisors. AOMS originated $222.25 million in nonprime wholesale originations in the first half of this year, nearlyl matching its $224.16 million total for all of last year. But retail production at Angel Oak Home Loans has declined ...


September 9, 2016 - Inside Nonconforming Markets

Wells Fined $185 Million for Cross-Selling Practices

Wells Fargo was hit with fines totaling $185.0 million this week for secretly opening unauthorized accounts for customers at the bank. Regulators said the bank’s incentives for cross-selling financial products pushed employees at Wells to open unwanted deposit and credit card accounts for customers of the bank. The fines were imposed by the Consumer Financial Protection Bureau ($100.0 million, the largest penalty ever imposed by the CFPB), the city and county of Los Angeles ...


September 9, 2016 - Inside Nonconforming Markets

Lone Star Goes Bigger with Second Nonprime MBS

The next mortgage-backed security from Lone Star Funds backed by new nonprime originations will be larger than the deal it issued in June, according to presale reports published this week. The planned $216.97 million COLT 2016-2 will be the largest MBS backed by post-crisis nonprime originations, topping the $161.71 million COLT 2016-1. The MBS scheduled to close next week differs in some ways from the previous MBS from Lone Star. The firm’s Caliber Home Loans ...


September 9, 2016 - Inside Nonconforming Markets

Bank Retained-Mortgage Portfolios Keep Growing, Few Jumbos Going in MBS

Bank and thrift holdings of first-lien mortgages increased by 2.4 percent in the second quarter of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. The holdings were boosted by jumbo mortgages, with few of the loans being delivered into mortgage-backed securities. Banks and thrifts held $1.90 trillion in first liens as of the end of June, up $44.22 billion from the end of March. Some $101.00 billion in jumbos were ... [Includes one data chart]


September 9, 2016 - IMFnews

Candidate Clinton Supports QM ‘Safe Harbor’ for Portfolio Lending

Candidate Clinton noted: “But when community banks and credit unions offer mortgages, they’re looking to invest in their neighborhoods and communities to help them grow and prosper…”


September 8, 2016 - IMFnews

Short Takes: Time to Bottom Fish in MSRs? / PennyMac and BofA Increase Deal Ceiling / Trade Groups Complain to the CFPB / More Ocwen Legal Headaches

More legal headaches for Ocwen? Looks that way...


September 8, 2016 - IMFnews

Ocwen Faulted for Noncompliant Processes Involving Force-Placed Insurance; Hold on Foreclosures Removed

Ocwen had a 24.2 percent error rate on a metric involving the timeliness of force-placed insurance notices, well above the 5.0 percent error rate allowed under the settlement…


September 7, 2016 - IMFnews

Short Takes: A New Production Milestone for Citadel / Other Nonprime Funders / FBR Feels Quite Bullish About 2016 / A Focus on Mortgage-Centric Depositories / And the NPL Winners Are…

FBR & Co. raised its estimate on residential loan production for 2016: $1.90 trillion for 2016...


September 7, 2016 - IMFnews

Lone Star to Issue Largest Post-Crisis MBS Backed by Nonprime. Caliber the Lead Originator

Almost 53 percent of the loans in the bond are non-qualified mortgages and many of the rest are higher-priced QMs…


September 6, 2016 - IMFnews

‘Value’ Hedge Fund Kingstown Cuts Stake in Ocwen Financial

Kingstown is known as a value-oriented hedge fund, with roughly $1.5 billion of assets under management.


September 6, 2016 - IMFnews

New CFPB Rule on Servicing May Actually be Good in Some Ways

Although the new requirements could prompt an increase in costs, analysts said a new requirement aimed at increasing the number of times troubled borrowers are evaluated for loss mitigation will be particularly helpful in certain states…


September 2, 2016 - IMFnews

TRID Compliance Issues Disclosed on New Nonprime MBS from Angel Oak, Deephaven

The originators believe they made a good-faith effort to address all TRID violations through the issuance of revised disclosures…


September 1, 2016 - IMFnews

Short Takes: ‘Fix n Flip’ Lender Jordan Should Have a Record Year / Help Wanted: SVP of Sales / Nonprime Retail Firm Angel Oak Continues Expansion / Declining MSRs at Prospect Mortgage / Luther Hires Former Finance of America Official

Retail nonprime/non-QM originator Angel Oak Home Loans is continuing its national expansion...


September 1, 2016 - IMFnews

Luther Burbank of California Pushing Non-QM Jumbos

Some of Luther Burbank’s borrowers are more than 40 years old and receive financial support from their parents.


August 31, 2016 - IMFnews

Short Takes: In the Jumbo Space, Banks Were the Top Gainers / Dave Stevens Isn’t Interested in the Job, but … / Former Mortgage Chief Indicted

What Stevens describes sounds like something a trade group might want to do...


August 31, 2016 - IMFnews

Lone Star Prepares Second Nonprime MBS of 2016, Possibly the Largest Deal of the Post-Crisis Era

The new security also will include mortgages originated by Sterling Bank & Trust…


August 30, 2016 - IMFnews

Short Takes: Bank Says ‘We’re a Subprime Lender Too’ / No Ties to BofA / And the Big Three of Nonprime Lending Are… / REIT Exits NPL Market / Former MGIC Chief Lacy Dead at 71

The largest nonprime (non-QM) lenders are likely (in no certain order): Citadel Loan Servicing, Deephaven Mortgage and Angel Oak...


August 29, 2016 - IMFnews

Short Takes: Just Because You’re Kicked Off the NYSE, That Doesn’t Mean… / Buying an MB for Diversification Purposes / A 10 Percent Broker Market Share and Holding / Clayton and Angel Oak / Nationstar is Hiring!

The nation's fourth largest servicer, Nationstar Mortgage, will hold a job fair on Sept. 12 at the Maude Cobb Convention Center in Longview, TX.


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