Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

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…


February 24, 2017 - IMFnews

Redwood Earned $25 Million in 4Q, Sees Strong Jumbo MBS Pricing, Will Expand ‘Choice’

Redwood CEO Marty Hughes said pricing for jumbo MBS is currently strong, with execution on issuance better than execution for whole loan sales.


February 23, 2017 - IMFnews

Short Takes: More on Ocwen’s CFPB Problem / An Invitation to Write a NORA Letter / MSR Buying Dreams Up in Smoke? / Ocwen for Sale Eventually? / A New Hire for ClosingCorp

The disclosure comes on the heels of a recent legal settlement in California that paves the way for Ocwen to buy servicing rights once again...


February 23, 2017 - IMFnews

More Red Ink from Ocwen with Future Losses Anticipated; Originations Down Almost 10%; Share Price Clocked

Officials at Ocwen warned of more financial turbulence throughout the year...


February 23, 2017 - IMFnews

Angel Oak Set to Issue its First Nonprime MBS Deal of the Year

The Angel Oak family of mortgage lenders finished 2016 with roughly $700 million of nonprime/non-QM originations, according to officials at the company.


February 21, 2017 - IMFnews

Ocwen Share Price Spikes After Servicer Settles with California

“This is a fair and just settlement for California consumers,” said CDBO Commissioner Jan Lynn Owen. “The terms will hold Ocwen accountable for widespread violations of laws that harmed borrowers in our state.”


February 21, 2017 - IMFnews

Trouble in the Jumbo Sector? Originations Decline for Second Consecutive Quarter; Market Share Down Too

Meanwhile, it appears that JPMorgan Chase is ready to surpass Wells Fargo as the market leader in jumbo production…


February 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.


February 17, 2017 - Inside Nonconforming Markets

News Briefs

Parkside Lending announced this week that it’s offering a new low-downpayment jumbo mortgage product that includes an option for lender-paid mortgage insurance or borrower-paid MI. The new Jumbo III product joins other wholesale jumbo offerings from Parkside, including mortgages with combined loan-to-value ratios up to 95.0 percent with no requirement for MI. Blackstone Group increased its presence in the market for rental properties by launching Finance ... [Includes two briefs]


February 17, 2017 - Inside Nonconforming Markets

Sales Help Reduce GSE Nonprime Holdings

Sales of mortgages and non-agency mortgage-backed securities helped reduce the government-sponsored enterprises’ exposure to nonprime mortgages in 2016. As of the end of the year, Fannie Mae and Freddie Mac held a combined $141.45 billion in purchased/guaranteed nonprime mortgages and nonprime MBS. The holdings were down by 5.8 percent from the end of the third quarter and 22.0 percent below the level at the end of 2015 ... [Includes one data chart]


February 17, 2017 - Inside Nonconforming Markets

Revised CHOICE Act Aims to Limit CFPB

A revised version of the Financial CHOICE Act could make changes to the Consumer Financial Protection Bureau that are so significant that other provisions in the bill aiming to loosen standards for qualified mortgages might not be necessary. Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, introduced HR 5983, the Financial CHOICE Act, in September and the committee approved the bill largely on a party-line vote that month. The bill covered a wide ...


February 17, 2017 - Inside Nonconforming Markets

Invictus Plotting Nonprime Growth with Verus

Invictus Capital Partners, an investment management firm, started aggregating nonprime mortgages in August 2015. The firm has purchased more than 400 mortgages and has plans for further growth. Invictus aggregates mortgages through an affiliate, Verus Mortgage Capital. Verus is set to issue its first nonprime mortgage-backed security – a $145.02 million deal that’s scheduled to close on Feb. 22. Verus has acquired $300.0 million of nonprime mortgages, according to ...


February 17, 2017 - Inside Nonconforming Markets

Nonprime Lenders Gear Up for Rated MBS

Fitch Ratings recently assigned “average” assessments to three originators and aggregators involved in the nonprime mortgage market, the same grades the firm assigned to Caliber Home Loans. Fitch evaluated Angel Oak Home Loans, Angel Oak Mortgage Solutions and Citadel Servicing as originators of nonprime mortgages. And the rating service reviewed Deephaven Mortgage as an aggregator of nonprime mortgages. The assessments by Fitch will help pave the way for ...


February 17, 2017 - Inside Nonconforming Markets

Galton to Include Non-QMs in New MBS

An affiliate of Galton Funding is preparing to issue a non-agency mortgage-backed security that will include non-qualified mortgages, according to documents filed with the Securities and Exchange Commission. Galton Funding acquires mortgages on a correspondent basis. The firm is part of Galton Capital Group, which is the residential mortgage investment group within Mariner Investment Group. Mariner is a New York-based investment advisor that manages about ...


February 17, 2017 - Inside Nonconforming Markets

Some Variety in Nonprime MBS from Invictus

The first nonprime mortgage-backed security from an affiliate of Invictus Capital Partners will be stocked with loans that have some unique features. Kroll Bond Rating Agency, Morningstar Credit Ratings and S&P Global Ratings placed preliminary AAA ratings on the deal last week. The planned $145.02 million Verus Securitization Trust 2017-1 differs in a number of ways from the $225.75 million COLT 2016-3 Mortgage Loan Trust, the nonprime MBS from an affiliate of Lone Star Funds ...


February 17, 2017 - Inside Nonconforming Markets

Chase Changes Strategy with Latest MBS

JPMorgan Chase is preparing to issue another large non-agency mortgage-backed security, but the deal includes some significant differences compared with the two large portfolio risk-transfer MBS the bank issued last year. The biggest change is that Chase appears to be planning to sell most of the MBS to investors. On the two large portfolio risk-transfer MBS that Chase issued in 2016, the bank retained about 90.0 percent of the issuance. At the time, Chase officials cited ...


February 17, 2017 - Inside Nonconforming Markets

Jumbo Originations Decline for Second Consecutive Quarter, Market Share Down

Originations of non-agency jumbo mortgages declined in two consecutive quarters to end 2016, according to a new ranking and analysis by Inside Nonconforming Markets. And while jumbo production was up last year compared with 2016, market share for the sector declined during that time. In recent years, jumbo originations and market share have been on a strong upward trend, though the momentum stalled in the second half of 2016. An estimated ... [Includes one data chart]


February 16, 2017 - IMFnews

‘Unique’ Risks in Making Mortgages to Foreign Nationals?

The main risks in making mortgages to foreign nationals: the borrower’s lack of credit history and issues tied to income verification.


February 14, 2017 - IMFnews

Another New Entrant to the Nonprime MBS Market: Galton

Mariner is an investment advisor that manages roughly $13.5 billion in assets...


February 14, 2017 - IMFnews

Blackstone Invests in B2R Finance, Then Buys Fix & Flip Lender Jordan Finance

Mark Filler, who founded Jordan and served as its CEO, was named president of Finance of America Commercial.


February 13, 2017 - IMFnews

IMA and Phoenix Capital Hit Market with New MSR Deals

Phoenix Capital is offering a private jumbo MSR portfolio sized at $216 million…


February 13, 2017 - IMFnews

JPMorgan Readies Large Non-Agency MBS Including Many Conforming Jumbo Mortgages

Contributors to deal include Quicken Loans and United Shore Financial Services, both top-ranked nonbank originators...


February 10, 2017 - IMFnews

First Nonprime MBS from Invictus Receives AAA Ratings

The bulk of the contributions for the MBS were aggregated by Invictus’ Verus Mortgage Capital affiliate. Servicing will be handled by Specialized Loan Servicing.


February 8, 2017 - IMFnews

Short Takes: Fix & Flip Lender Targets Multifamily Sector / Branching Out Into Florida / No Word on Carson and His Deputy / New Rez Tests ABS Market / Fed General Counsel Alvarez Announces Retirement

The full Senate could vote on the Ben Carson nomination next week...


February 8, 2017 - IMFnews

Top Prime MBS Contributors are Mostly Banks

Quicken Loans ranked third in terms of contributions to prime non-agency MBS…


February 7, 2017 - IMFnews

Fitch Gives ‘Average’ Ratings to Nonprime Lenders Angel Oak, Citadel and Deephaven

The assessment matches the rating service’s “grade” on Caliber Home Loans, which issued the first AAA-rated nonprime MBS backed by new originations.


February 7, 2017 - IMFnews

Fed Survey: Demand for Subprime Mortgage Credit Fell in 4Q16

The Fed LO survey does not include sentiments expressed by loan officers and account executives who work at nonbanks…


February 7, 2017 - IMFnews

Blackstone in Takeover Talks with ‘Fix & Flip’ Lender Jordan Capital

Over the past two years, the Wall Street giant has purchased a handful of nonbank lenders, including Gateway Funding...


February 6, 2017 - IMFnews

Short Takes: So, You Want to Hang Onto That Market Share? / Get Ready for Jeb’s FCA, Version 2.0 / Buy a Stake in Us First / Keeping an Eye on the 10-Year / Greystone Hires an FHA Managing Director

What? Democrats won't help in changing the Dodd-Frank Act?


February 6, 2017 - IMFnews

JPM Working on a Non-Agency MBS Deal With Loans Aggregated by Two Harbors

In July, publicly traded REIT Two Harbors Investment Corp. announced it was discontinuing its mortgage conduit and securitization operations.


February 6, 2017 - IMFnews

Jumbo Originations Up at Some Shops, Down at Others

Among four depositories that publicly disclose their jumbo originations, First Republic Bank and Flagstar Bancorp posted increases…


February 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.


February 3, 2017 - Inside Nonconforming Markets

News Briefs

PennyMac Financial Services has significantly curtailed its originations of jumbo mortgages in recent years, and ended 2016 nearly out of the sector all together. PennyMac didn’t have any jumbo originations in the fourth quarter and as of the end of 2016, the nonbank only had $1.0 million in locked jumbos in its pipeline. Citigroup has entered into a subservicing agreement with Cenlar for the bank’s non-agency mortgages. Servicing is expected to be transferred ... [Includes four briefs]


February 3, 2017 - Inside Nonconforming Markets

Some Risks in Mortgages for Foreign Nationals

The number of lenders offering mortgages to foreign-national borrowers has increased significantly in recent years. The product is seen as another way for non-agency lenders to differentiate themselves, though industry analysts warn that lending to foreign nationals involves some unique risks. A foreign national is a person that resides in a country where they’re neither a citizen nor permanent resident. Angel Oak Mortgage Solutions, Caliber Home Loans, Citadel Servicing ...


February 3, 2017 - Inside Nonconforming Markets

Jumbo Prepayment Speeds Likely to Slow

With the Federal Reserve expected to raise its benchmark overnight lending rate this year, interest rates on new mortgages are also projected to go up. Higher rates on mortgages are likely to cause a significant decline in prepayments on post-crisis jumbo mortgages and will increase default risk, according to Morningstar Credit Ratings. Within the first 12 months of origination, prepayment rates on post-crisis jumbos included in non-agency mortgage-backed securities have ...


February 3, 2017 - Inside Nonconforming Markets

Top Prime MBS Contributors Largely Banks

Two banks dominated contributions to prime non-agency mortgage-backed securities issued in the past two years, according to a new ranking and analysis by Inside Nonconforming Markets. And a majority of the top 10 contributors to prime jumbo MBS were banks or affiliated with banks. JPMorgan Chase accounted for $4.58 billion of the prime mortgages included in prime non-agency MBS in 2015 and 2016, a 22.1 percent share of total issuance ... [Includes one data chart]


February 3, 2017 - Inside Nonconforming Markets

Redwood Quick with Another Jumbo MBS

Redwood Trust is moving relatively quickly to issue its second jumbo mortgage-backed security of 2017. The firm is planning a $347.85 million transaction, according to a presale report from Kroll Bond Rating Agency. Sequoia Mortgage Trust 2017-2 is scheduled to close Feb. 17, about a month after Redwood closed a $342.93 million issuance. The burst of activity suggests that Redwood is seeing relatively strong pricing for jumbo MBS. Officials at Redwood couldn’t comment on ...


February 3, 2017 - Inside Nonconforming Markets

Nonprime MBS Issuance Expected to Increase

There will likely be a notable increase in the issuance of mortgage-backed securities backed by newly originated nonprime mortgages, according to Fitch Ratings. As many as eight firms are looking to join Lone Star Funds in issuing rated deals, though issuance isn’t expected to get anywhere near the levels seen in the run up to the financial crisis. Some $999.5 million in nonprime MBS was issued in 2016, according to the rating service. “Fitch estimates those figures could double in 2017, and ...


February 3, 2017 - Inside Nonconforming Markets

Invictus Set to Issue Its First Nonprime MBS

Invictus Capital Partners, an investment management firm, is preparing to issue a nonprime mortgage-backed security backed by newly-originated home loans from four different lenders, according to documents filed with the Securities and Exchange Commission this week. Covius, a due diligence provider, said it reviewed mortgages with an unpaid principal balance of $118.96 million for the planned Verus Securitization Trust 2017-1. The bulk of the contributions for the MBS were ...


February 3, 2017 - Inside Nonconforming Markets

Jumbo Originations Fluctuate at Some Banks; Up at First Republic and Flagstar

Jumbo production increased significantly for some lenders during the fourth quarter and declined for others, according to a preliminary analysis of jumbo originations. Among four banks that publicly disclose their jumbo volume, First Republic Bank and Flagstar Bancorp posted increases compared with both the third quarter of 2016 and the fourth quarter of 2015. BofI Holding and EverBank Financial reported declines in jumbo production. First Republic originated $3.06 billion of single-family ...


February 3, 2017 - IMFnews

A Loosening of Mortgage Credit? Not Yet, Not Really

Tom Hutchens of nonprime originator Angel Oak Mortgage Solutions said his shop presently employs 44 wholesale account executives and plans to hire 60 more over the next 18 months.


February 3, 2017 - IMFnews

As Dodd-Frank Repeal/Replace Plans Firm Up, SFIG Unveils Securitization Reform Priorities

SFIG noted that a complete repeal of risk-retention requirements “is likely neither appropriate nor probable.”


February 2, 2017 - IMFnews

Short Takes: A Bank in the Hunt for Mortgage M&A / PRMI Has Record Year / Citadel Passes the $1 Billion Mark / SFIG Starts ‘Grassroots’ Effort / SoFi Buys Zenbanx / Why Didn’t You Go With Me? Was it Something We Did?

The "Lost Sales Analysis" product – licensed from its developer, Equifax – helps originators determine if applicants closed a mortgage with a competitor.


February 2, 2017 - IMFnews

Invictus Capital Readies New Nonprime MBS Backed by Originations from Verus, Angel Oak and Others

The new MBS is largely backed by non-QMs, along with some “rebuttable presumption” QMs…


February 1, 2017 - IMFnews

Short Takes: FGMC Hires Former Ocwen Official to Run Wholesale / A Bullish Sign for Ocwen? / Top 10 Dreams / Housing is a (Single) Girl’s Best Friend? / Mnuchin Nomination Moves Forward

The nomination of investment banker Steven Mnuchin to head the Treasury Department moved forward Wednesday...


February 1, 2017 - IMFnews

A Bullish Sign for Nonprime: Three Active Originators Working on MBS Deals

Tom Hutchens of AOMS, said “a lot” of his optimism about higher nonprime origination volumes for 2017 is tied to securitization. “This is now a liquid market,” he said.


January 31, 2017 - IMFnews

Cerberus Affiliate Readies $2.1 Billion Non-Agency MBS Backed by (Very) Seasoned Loans

All of the loans are current, though Fitch noted that 20.4 percent are “dirty current,” having experienced recent delinquencies or incomplete pay-strings…


January 30, 2017 - IMFnews

Redwood Set to Issue its – and the Market’s – Second Jumbo MBS of the Year

For all of 2016, Redwood came to market with just three jumbo MBS deals.


January 26, 2017 - IMFnews

With Production Volume Strong, Nonprime Wholesalers AOMS and Citadel in a Hiring Mode

The Citadel CEO noted that his shop is receiving many unsolicited resumes from mortgage workers employed at conventional shops, a sign that some firms are about to cut staff.


Poll

With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.
Yes, by a lot.
Yes and, heck, we may even do non-QM lending.
No, not at all.
No and we may even tighten credit.

vote to see results