Browse articles from all of our Newsletters related to Nonconforming.

December 9, 2016 - IMFnews

Subprime Loan Performance Improves, but Servicing Continues to Run Off

Caliber Home Loans was the only subprime servicer among the top 10 to increase its subprime portfolio compared with the third quarter of 2015

December 9, 2016 - IMFnews

SFIG Members Cite Progress on Non-Agency MBS Reform Effort; But More Work Ahead, Much More…

“That’s a lot of work for an industry that apparently doesn’t exist,” said Richard Johns, SFIG’s executive director.

December 9, 2016 - IMFnews

Solid Growth in Outstanding 1-Family MBS During 3Q16; Strong Demand from Investors

The Federal Reserve continues to be the largest investor in the MBS market, though it has long since stopped growing its portfolio…

December 8, 2016 - IMFnews

Lone Star’s New Nonprime MBS Sets the Standard: An AAA Rating and the Largest Post-Crisis Deal to Date

The loans funded by Sterling and Lendsure entailed the use of bank statements to verify borrower income.

December 8, 2016 - IMFnews

Agency Jumbo Production Outpaced ‘Traditional’ Jumbo Originations in 3Q16

The third quarter saw a sharp increase in refinance originations that appeared to give a bigger boost to government and conventional-conforming production than the jumbo market got.

December 7, 2016 - IMFnews

Non-Agency Lender Citadel Sets Correspondent Purchase Goal for 2017

Perl is bullish on the non-agency market for the coming year and is thankful Citadel is not a Fannie/Freddie lender…

December 6, 2016 - IMFnews

Higher GSE Loan Limits Won’t Have Much of an Impact on Jumbos

Of the $292.98 billion in non-agency jumbo mortgages originated in 2015, 3.1 percent were in areas where the loan balance would have been eligible for delivery to the GSEs under the loan limits set to take effect in January.

December 5, 2016 - IMFnews

SFIG Proposes Standards for ABS from Marketplace Lenders

SFIG’s Marketplace Lending Committee includes 250 individuals representing more than 70 companies.

December 5, 2016 - IMFnews

Jumbo Servicing Up 10.2 Percent Year Over Year

The volume of jumbo mortgages outstanding rose to an estimated $892.4 billion as of the end of September…

December 2, 2016 - 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.

December 2, 2016 - Inside Nonconforming Markets

News Briefs

Lone Star Funds is set to issue a mortgage-backed security backed by new nonprime mortgages, according to documents filed with the Securities and Exchange Commission this week. It will be the third MBS from the COLT shelf this year. AMC Diligence said it reviewed 486 mortgages with a total unpaid principal balance of $235.40 million for the planned MBS. The mortgages were originated by Caliber Home Loans, LendSure Mortgage and Sterling Bank & Trust ... [Includes two briefs]

December 2, 2016 - Inside Nonconforming Markets

Caliber Seen as Effectively Managing Growth

Caliber Home Loans has significantly increased its servicing portfolio – including subprime mortgages – in recent years. While rapid growth by nonbank servicers has raised some concerns among industry analysts, S&P Global Ratings said Caliber has effectively managed its growth to this point. Caliber is one of the few servicers that has increased subprime servicing volume in recent years, and officials at the company have plans for further growth. To this point, Caliber’s servicing growth has ...

December 2, 2016 - Inside Nonconforming Markets

Subprime Performance Improves, Portfolios Decline

Performance of subprime mortgages continues to improve as the amount of loans outstanding declines. Some $265.0 billion in subprime mortgages were outstanding as of the end of the third quarter, according to estimates by Inside Nonconforming Markets. Only a small volume of new subprime mortgages have been originated since 2008, and in the past couple of years, large transfers of subprime servicing have been limited, prompting subprime servicing to ... [Includes one data chart]

December 2, 2016 - Inside Nonconforming Markets

AIG Plots Return to Non-Agency MBS Issuance

American International Group is preparing to resume issuing non-agency mortgage-backed securities, according to officials at the insurance company. The planned issuance differs significantly from the subprime MBS AIG issued before the financial crisis. Douglas Dachille, an executive vice president and CIO, said the firm is working to “rebalance its exposure to residential mortgages” after AIG’s sale of United Guaranty, a private mortgage insurer. During a recent presentation to investors ...

December 2, 2016 - Inside Nonconforming Markets

Moody’s Issues Caution on Bank-Statement Loans

Moody’s Investors Service published a warning this week regarding mortgage programs that use bank statements and letters from accountants to verify borrowers’ income. The rating service said that type of underwriting – especially when relying on fewer than 24 months of statements – yields loans that are more risky than mortgages that have traditional income verification. Bank-statement mortgages have gained some prominence in the non-agency market this year as Lone Star Funds ...

December 2, 2016 - Inside Nonconforming Markets

Jumbo Servicing Increases for Many in 3Q16

Most of the top 30 servicers of jumbo mortgages increased their servicing portfolios during the third quarter, according to a new Inside Nonconforming Markets ranking. The volume of jumbo mortgages outstanding rose to an estimated $892.4 billion as of the end of September, up 1.7 percent from June and up 10.2 percent from a year ago. Wells Fargo remained the top jumbo servicer, with a $275.1 billion portfolio. That was up 1.1 percent compared to the second quarter ... [Includes one data chart]

December 2, 2016 - Inside Nonconforming Markets

Trump Administration to Push for GSE Reform

Reform of the government-sponsored enterprises and a potential for more non-agency lending will be a priority for the Trump administration, according to the presumptive nominee to head the Treasury Department. President-elect Donald Trump is likely to nominate Steve Mnuchin to lead the Treasury. Mnuchin is a former partner at Goldman Sachs, founded the hedge fund Dune Capital Management and was among the investors that purchased IndyMac in 2009. In an interview this week on ...

December 2, 2016 - Inside Nonconforming Markets

Higher Loan Limits Take Small Non-Agency Bite

New loan limits for the government-sponsored enterprises in 2017 won’t have much of an impact on jumbo originations, according to an analysis by Inside Nonconforming Markets. The Federal Housing Finance Agency announced last week that the baseline conforming loan limit for Fannie Mae and Freddie Mac will increase in 2017, which will also boost the GSEs’ high-cost loan limit. The baseline conforming loan limit will increase to $424,100 in 2017, up from the $417,000 level it has ...

December 2, 2016 - Inside Nonconforming Markets

SFIG Plan on Non-Agency MBS Reps and Warrants Puts Burden on Aggregators

Standards proposed by the Structured Finance Industry Group for disclosures of representations and warranties on new non-agency mortgage-backed securities are likely to put a burden on conduits and other aggregators that pool mortgages from scores of originators. The Wall Street group recently released the fourth edition of its RMBS 3.0 “green papers,” which aim to revive issuance of non-agency MBS by making reforms that will attract investors. The latest green paper focused on ...

December 1, 2016 - IMFnews

Moody’s Issues Caution on ‘Bank Statement’ Mortgages

More lenders are making “bank statement” loans these days, including both banks and nondepositories…

November 30, 2016 - IMFnews

Bank Holdings of Non-Mortgage ABS Continued to Fade, But the Market Itself Stalled in 3Q16

The ABS market itself shrank slightly during the third quarter, according to data reported by the Securities Industry and Finance Markets Association...

November 30, 2016 - IMFnews

Lone Star Readies Another MBS Backed by New Nonprime Mortgages

The mortgages were originated by Lone Star affiliate Caliber Home Loans, but also LendSure Mortgage and Sterling Bank & Trust.

November 29, 2016 - IMFnews

FirstKey, New Rez Out with Separate Nonprime MBS Deals Backed by Seasoned Loans

In the FirstKey deal, the loans have seasoned for an average of 10 years…

November 28, 2016 - IMFnews

New SFIG ‘Green Paper’ Suggests Benchmark Reps & Warrants for Non-Agency MBS

Current R&W disclosures are seen as particularly inadequate for deals involving non-agency mortgages from multiple lenders…

November 22, 2016 - IMFnews

Ally to Pay $52.0 Million to Settle with DOJ on Issues Involving ResCap Subprime MBS

The settlement noted that the subprime MBS from ResCap included mortgages with looser underwriting standards than the underwriting guidelines that were disclosed to MBS investors.

November 21, 2016 - IMFnews

Jumbo Mortgage Market Cools Off Somewhat in Third Quarter with Drop in Production, Market Share

Eight of the top 10 jumbo lenders had declines in jumbo originations on a quarterly basis in the third quarter.

November 18, 2016 - 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.

November 18, 2016 - Inside Nonconforming Markets

News Briefs

The Structured Finance Industry Group published the fourth edition of its “RMBS 3.0 Green Papers” this week. The trade group said it will release a fifth edition of the Green Papers in the coming weeks. The latest papers address various issues in the non-agency mortgage-backed security market, including representations and warranties, the concept of a deal agent and data disclosure. Moody’s Investors Service this month withdrew its assessment of ... [Includes two briefs]

November 18, 2016 - Inside Nonconforming Markets

Changes to QM Standards Possible Under Trump

The election of Donald Trump and Republican control of Congress could prompt changes to standards for qualified mortgages, according to industry analysts. QM standards were established by the Dodd-Frank Act in 2010 and took effect in 2014 as part of the Consumer Financial Protection Bureau’s ability-to-repay rule. Trump’s financial services policy implementation team said it will work to dismantle the DFA and “replace it with new policies to encourage economic growth and ...

November 18, 2016 - Inside Nonconforming Markets

Contradiction Seen in Standards for Non-QMs

The Consumer Financial Protection Bureau’s recent actions against an unspecified number of lenders that offer non-qualified mortgages prompted some criticism about how the regulator enforces standards in the ability-to-repay rule. The CFPB cited lenders for originating non-QMs that allowed “alternative income documentation” for salaried borrowers. The CFPB said the products offered by the lenders relied primarily on the assets of each borrower when making an ATR determination ...

November 18, 2016 - Inside Nonconforming Markets

Income& Works to Expand Non-QM Investor Base

A start-up is working to allow retirees and other individual investors to buy into non-qualified mortgages, a market that so far has been dominated by hedge funds and other large institutional investors, along with occasional inclusion in non-agency mortgage-backed securities. Brad Walker, CEO of Income&, said the new platform offers an alternative to traditional fixed-income investments. He said Income& is trying to create a higher-yielding, lower-risk fixed-income instrument ...

November 18, 2016 - Inside Nonconforming Markets

Mixed Signals on Demand for Non-QMs

Low mortgage interest rates appear to have contributed to a decline in applications for non-qualified mortgages at Impac Mortgage Holdings in the third quarter, according to officials at the nonbank. “A decline in mortgage interest rates generally increases the volume of conventional refinance products over non-QM loans,” Impac said in a quarterly filing to the Securities and Exchange Commission last week. Of the 58 banks that report to the Federal Reserve on the market for ...

November 18, 2016 - Inside Nonconforming Markets

Improved Pricing for Redwood’s Jumbo MBS

Pricing has improved sequentially with each of the three jumbo mortgage-backed securities Redwood Trust has issued this year, according to officials at the real estate investment trust. Redwood’s most recent deal, a $343.16 million jumbo MBS, was issued in October. Christopher Abate, Redwood’s president and CFO, said it’s possible that the REIT will issue another jumbo MBS this year. Marty Hughes, Redwood’s CEO, added a caveat about uncertainty in the financial markets ...

November 18, 2016 - Inside Nonconforming Markets

Shellpoint, Chase Prep New Jumbo MBS

The market for jumbo mortgage-backed securities looks to be regaining some momentum as Shellpoint Partners plans to resume issuance and market-leader JPMorgan Chase prepares another deal. Shellpoint’s New Penn Financial is set to issue a $353.68 million jumbo MBS next week, according to presale reports by Kroll Bond Rating Agency and Moody’s Investors Service. Shellpoint Co-Originator Trust 2016-1 will mark the first issuance from the MBS shelf since ...

November 18, 2016 - Inside Nonconforming Markets

Jumbo Originations Decline in 3Q16 Along with Share of Mortgage Market

Originations of jumbo mortgages declined slightly from the second to the third quarter of 2016, according to a new ranking and analysis by Inside Nonconforming Markets. Meanwhile, production of conventional-conforming mortgages and loans with a government guarantee increased significantly in that span, prompting an uncharacteristic decline in market share for jumbo mortgages. An estimated $100.0 billion in jumbos were originated in ... [Includes one data chart]

November 16, 2016 - IMFnews

Short Takes: Don’t Panic, It’s the Thanksgiving Effect / Locks and Apps are Down, But… / A Correction Coming? / Dow 19,000 / No is No. Got That?

And there’s a school of thought that says rates have risen too quickly and by too much...

November 15, 2016 - IMFnews

New Jumbo MBS from Shellpoint Stocked with QMs, Many to Self-Employed Borrowers

KBRA said the borrowers have strong credit profiles, significant home equity, and a weighted-average credit score of 760.

November 14, 2016 - IMFnews

Window Rock Acquires Assets from WinWater to Help Launch Mortgage Conduit

Two former officials from WinWater joined Window Rock and will help shape the conduit, which will be known as Ventana Loan Services.

November 11, 2016 - IMFnews

What We’re Hearing: All Hail Donald? / Leaving Town Soon: Richard Cordray / The Subprime Industry Just Doubled in Value / Will Mortgage Call Center Jobs Return? / Free at Last: Fannie Mae and Freddie Mac?

In case you didn’t know it, the Irvine, CA-based Citadel now services roughly $650 million in nonprime loans. Angel Oak and Deephaven use subservicers…

November 11, 2016 - IMFnews

GSEs Continue to Sell Nonprime Holdings

The serious delinquency rate on Fannie’s purchased/guaranteed Alt A mortgages was 5.27 percent at Sept. 30, down from 6.75 percent the year before.

November 11, 2016 - IMFnews

Non-QM/Subprime Lenders Seek Ratings. A Harbinger of More Securitizations?

An executive at Angel Oak Capital, Atlanta, parent of Angel Oak Home Loans, confirmed that his firm is seeking a rating and would like to issue a rated non-QM MBS someday…

November 10, 2016 - IMFnews

Short Takes: The Ginnie Mae ‘Acknowledgement Agreement’ is Late / Caliber and M&A? / Genworth Chief Not Losing Sleep Over Trump and the GSEs / CP Says ‘Sell’ Walter / Ocwen’s Faris Bullish

Compass Point has concerns whether Walter's servicing business (Ditech) can return to profitability…

November 9, 2016 - IMFnews

Supreme Court Justices Appear Willing to Rule in Favor of Miami in Controversial Fair Housing Act Case

The attorney for the lenders faced scrutiny from some of the liberal-leaning justices on the Supreme Court, including Justices Ruth Bader Ginsberg, Elena Kagan and Sonia Sotomayor

November 8, 2016 - IMFnews

Short Takes: Negative Feelings on GSE Reform / Zero Capital is Not An Issue / GSE Subcommittee Chairman Garrett May be Vulnerable / Jumbo MBS Execution Improves / Stonegate Hires Ex-US Bank Official

And roughly 24 percent of IMFnews viewers believe that reform of Fannie Mae and Freddie Mac likely won’t happen in their lifetime…

November 8, 2016 - IMFnews

Shellpoint Plans First Non-Agency MBS in More than a Year

Shellpoint is the parent of New Penn Financial and Shellpoint Mortgage Servicing, both top-50 players…

November 8, 2016 - IMFnews

Redwood Boosts 3Q Income with Above-Average Margins on Jumbo Operations

Redwood sold $774.0 million of home mortgages into a welcoming whole loan market along with a $358.00 million jumbo MBS…

November 8, 2016 - IMFnews

Jumbo Originations Show Signs of Decline at Certain Banks

EverBank – which is in the process of being sold to TIAA – originated $869.8 million of jumbos in 3Q16, a 1.5 percent sequential decline, and down 28.7 percent from the third quarter of 2015.

November 7, 2016 - IMFnews

CFPB Reveals Actions Taken Against Non-QM Lenders on Income Verification

The CFPB did not like the idea of some lenders using an Internet-based tool that aggregates employer data and estimates income based upon each consumer’s zip code, job title, and years worked…

November 4, 2016 - 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.

November 4, 2016 - Inside Nonconforming Markets

News Briefs

Two Harbors Investment held jumbo mortgages with a fair market value of $655.80 million as of the end of September. While the real estate investment trust is on track to discontinue its mortgage loan conduit and securitization business, Two Harbors noted that it had outstanding purchase commitments to acquire $61.40 million in unpaid principal balance as of the end of September. Two Harbors said it incurred $1.19 million in costs during the third quarter ... [Includes three briefs]


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