Nonconforming

Browse articles from all of our Newsletters related to Nonconforming.

January 20, 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.


January 20, 2017 - Inside Nonconforming Markets

News Briefs

The Department of Justice this week finalized previously announced settlements with Deutsche Bank and Credit Suisse regarding non-agency mortgage-backed security activities in the run-up to the financial crisis. The DOJ said the $7.20 billion settlement with Deutsche Bank was the single largest residential MBS resolution for the conduct of a single entity. The settlement with Credit Suisse was for $5.28 billion. Both of the settlements included civil penalties and ... [Includes two briefs]


January 20, 2017 - Inside Nonconforming Markets

Some Risks Seen with Shared-Equity Products

Shared-equity mortgage arrangements from for-profit investors offer help for borrowers that otherwise might not qualify for a mortgage while also introducing risks, according to analysts at the Urban Institute’s Housing Finance Policy Center. In a shared-equity transaction, a third party helps a mortgage borrower purchase a home in exchange for some of the home-price appreciation. The HFPC noted that shared-equity transactions reduce the amount of money required from ...


January 20, 2017 - Inside Nonconforming Markets

Banks Reiterate Calls for Portfolio QM Designation

With President-elect Donald Trump set to take office and Republicans in control of Congress, trade groups representing banks reiterated calls for revisions to standards for qualified mortgages. Banks are pushing for QM status to be applied to any mortgage held in portfolio, even if the loans have characteristics that would otherwise make them non-QMs subject to greater liability. In a letter this month to leaders of Congress, Rob Nichols, president and CEO of the American Bankers Association ...


January 20, 2017 - Inside Nonconforming Markets

NewLeaf Launches New Specialty Programs

NewLeaf Wholesale recently added four products to its “specialty” mortgage offerings with relatively lenient underwriting standards. The loans are aimed at borrowers who don’t qualify for conforming mortgages. The lender is now offering a jumbo mortgage that allows loan-to-value ratios up to 90.0 percent without private mortgage insurance, a residual-income product, an asset-depletion product and a product for foreign investors. The loans join NewLeaf’s other specialty products ...


January 20, 2017 - Inside Nonconforming Markets

Performing Subprime Mortgages Ripe for Refis

A significant number of borrowers with subprime mortgages originated in 2002 and beyond are prime targets for refinances, according to analysts at Black Knight Financial Services. More than 600,000 subprime mortgages are currently performing, according to Wesley Winter, a senior modeler at Black Knight. He said that while all of the borrowers aren’t necessarily attractive targets for refinances, there’s $10.0 billion to $25.0 billion in potential refi opportunities involving ...


January 20, 2017 - Inside Nonconforming Markets

Some Shifts for Loans in Prime Non-Agency MBS

The types of home loans included in prime non-agency mortgage-backed securities issued during the fourth quarter of 2016 varied somewhat compared with issuance from recent quarters, according to an analysis by Inside Nonconforming Markets. Some $907.8 million in prime non-agency MBS was issued during the fourth quarter. Collateral in the deals shifted more toward adjustable-rate mortgages, interest-only mortgages and refinances. ARMs ... [Includes one data chart]


January 20, 2017 - Inside Nonconforming Markets

MBS Investors Seek Legislative Reforms

Large swaths of investors will continue to avoid buying non-agency mortgage-backed securities unless Congress passes investor-friendly reforms, according to Chris Katopis, executive director of the Association of Mortgage Investors. “Private capital has virtually left the U.S. mortgage market,” he said. “The future is likely to reflect a similar situation unless Congress helps establish the necessary systems, structures and standards for private capital to return.” In a recent study published by ...


January 20, 2017 - Inside Nonconforming Markets

Investors Bid Up New Redwood Jumbo MBS Despite Partial Due Diligence

The jumbo mortgage-backed security Redwood Trust is set to issue on Jan. 20 received improved pricing compared with the company’s previous deal issued in October. The new MBS is fairly similar to the prior bond, indicating stronger demand from investors. The $343.28 million Sequoia Mortgage Trust 2017-1 priced last week. The super-senior tranche priced 1-20 back of Fannie 3.5s, which was four ticks tighter than Redwood’s previous offering, according to an analysis by Wells Fargo Securities ...


January 20, 2017 - IMFnews

Upwards of $20 Billion in Legacy Subprime Mortgages Could be Refinanced

Black Knight studied loan-level data on outstanding mortgages to derive at its conclusion…


January 20, 2017 - IMFnews

The Final Tally: ABS Issuance Was Just About Flat in 2016

Santander Consumer USA was the most active issuer of vehicle ABS…


January 19, 2017 - IMFnews

Short Takes: The No. 2 at HUD Will Be… / Carson’s Advisors / Mnuchin Says His Goal was to Modify Mortgages / The Roots of OneWest: Countrywide / Flagstar Names Whip to its Board

Early in its existence, IndyMac was a nonbank and had been grub-staked by Countrywide Financial...


January 18, 2017 - IMFnews

Deutsche Bank’s $7.2 Billion Settlement with DOJ the Largest Residential MBS Action Against a Single Entity

DB was faulted for failing to disclose second liens on mortgages in MBS and for concealing refreshed credit scores that were worse that the credit scores disclosed to investors.


January 17, 2017 - IMFnews

Moody’s Reaches $864 Million Settlement with DOJ and 21 States for Pre-Crisis Ratings

Moody’s settled the MBS/CDO case without admitting wrongdoing…


January 13, 2017 - IMFnews

The Final Tally: Non-Agency MBS Production Tumbled Sharply in 2016

Oddly enough, the nonprime space showed some signs of life last year and hopes are high for 2017 as well…


January 11, 2017 - IMFnews

On the Horizon: More Non-Agency/Non-Prime MBS Deals

In 2016, Caliber issued three non-agency MBS deals that included prime-quality and jumbo loans, often made to borrowers described in ratings’ reports as consumers with “unblemished” credit.


January 11, 2017 - IMFnews

Zeus Offers Crowdfunding for Hard-Money RE Loans. Four-Day Funding?

In addition to crowdfunded hard-money loans, Zeus offers traditional forward and reverse mortgages.


January 10, 2017 - IMFnews

Non-QM Originator LendSure Lays Out its Plan for Growth

LendSure is licensed in 12 states, with approvals pending in seven more…


January 10, 2017 - IMFnews

A Wide Variety of Denial Rates Among Jumbo Originators

Some 30 percent of jumbo application denials were tied to debt-to-income ratios, compared to 15 percent for all loan types.


January 9, 2017 - IMFnews

In Limbo: the ‘Prime’ Non-Agency MBS Market

Some $1.57 billion in prime non-agency MBS were issued in the fourth quarter, down 61.3 percent…


January 6, 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.


January 6, 2017 - Inside Nonconforming Markets

News Briefs

Redwood Trust is preparing to issue a $343.28 million jumbo mortgage-backed security, according to a presale report by Kroll Bond Rating Agency. Sequoia Mortgage Trust 2017-1 will include mortgages from 132 lenders, led by Quicken Loans with a 7.8 percent share. Servicing for loans in the MBS will mostly be handled by Shellpoint Mortgage Servicing. Redwood will retain 1.0 percent of the dollar volume of the MBS, according to KBRA. Three firms ... [Includes two briefs]


January 6, 2017 - Inside Nonconforming Markets

Fitch Assigns Subprime Servicer Rating to Citadel

Fitch Ratings assigned a subprime servicer rating to Citadel Servicing in late December, an indication that Citadel will be involved with rated nonprime mortgage-backed securities. Citadel received an RPS3- rating with a stable outlook. Such level 3 servicers demonstrate proficiency in overall servicing ability, according to Fitch. “The servicer rating and stable outlook reflect Citadel’s experienced management team, adequate risk management practices and moderate use of technology ...


January 6, 2017 - Inside Nonconforming Markets

New Penn CEO Launches Home-Equity Lender

Spring EQ recently launched operations, focusing on home-equity loans. The nonbank was co-founded by Jerry Schiano, president and CEO of New Penn Financial, a position he will also retain. HEL lending is dominated by banks and credit unions. However, Schiano said Spring EQ aims to compete with other types of lenders. “I want to help underserved borrowers who are currently relying on high-rate personal loans and credit cards or refinancing with large up-front fees,” he said ...


January 6, 2017 - Inside Nonconforming Markets

Non-QM Originator LendSure Set for Growth

LendSure Mortgage, which originated its first loan in July 2015, contributed mortgages with a total unpaid principal balance of $14.62 million to a nonprime mortgage-backed security recently issued by an affiliate of Lone Star Funds. The lender focuses on non-qualified mortgages via the broker channel. LendSure, headquartered in San Diego, was founded by former executive managers from Accredited Home Lenders, a prominent subprime lender before the financial crisis ...


January 6, 2017 - Inside Nonconforming Markets

Wide Variety Among Lenders on Jumbo Denials

The denial rate on jumbo mortgages varies significantly among lenders, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Among the top 25 lenders, denial rates for jumbo applications in 2015 ranged from a low of 2.3 percent to a high of 76.8 percent. Overall, the top 25 lenders denied 18.1 percent of the $367.49 billion in total unpaid principal balance for jumbo-mortgage ... [Includes one data chart]


January 6, 2017 - Inside Nonconforming Markets

Bank First-Lien Holdings Up Again in 3Q16

The portfolio holdings of first-lien residential mortgages at banks and thrifts continued to increase during the third quarter of 2016, according to a ranking and analysis by Inside Nonconforming Markets. Banks and thrifts held $1.93 trillion in first liens at Sept. 30, up 1.6 percent from the previous quarter and a 3.9 percent increase compared with the third quarter of 2015. Originations and acquisitions of mortgages – both jumbos and non-jumbos ... [Includes one data chart]


January 6, 2017 - Inside Nonconforming Markets

Investors Push for Standardized Reps and Warrants

A number of large investors that purchased non-agency mortgage-backed securities before the financial crisis have indicated that they won’t be willing to invest in new issuance until issuers standardize representations and warranties. “Investors have lost confidence in the architecture of this market,” an investor said in December at the Structured Finance Industry Group’s RMBS Symposium, which was produced by Information Management Network. The investor was frustrated ...


January 6, 2017 - Inside Nonconforming Markets

Prime Non-Agency MBS Issuance Tumbles, Sector ‘in Limbo’ With Only 4 Active Issuers

Issuance of prime non-agency mortgage-backed securities fell sharply during 2016 from already low issuance levels, according to a new ranking and analysis by Inside Nonconforming Markets. Forecasts for issuance this year are largely subdued, with some industry analysts noting that the prime non-agency MBS market is “in limbo.” Some $9.32 billion in prime non-agency MBS were issued in 2016, a 22.8 percent decline from the previous year. Issuance volume ... [Includes one data chart]


January 6, 2017 - IMFnews

Redwood Trust Readies First Jumbo MBS of the New Year

It looks like Redwood Trust will be the first out the door with a jumbo security in 2017. Who’s next?


January 6, 2017 - IMFnews

Heavy Agency MBS Production Lifted Asset Securitization to 3-Year High in 2016

In 2016, the non-agency MBS market was a dud…


January 5, 2017 - IMFnews

Angel Oak’s Final Non-QM Tally for 2016: $700 Million

“It was a record month for us,” said Angel Oak executive Mike Fierman.


January 4, 2017 - IMFnews

Short Takes: Dr. Carson to Meet the Senate / Next: Steve Mnuchin / New OneWest Allegations a Problem? Probably Not / Redwood Readies its First Jumbo MBS of the Year

Will the leaked memo lead to confirmation problems for Mnuchin, a Goldman Sachs and Wall Street alumni? Probably not...


January 4, 2017 - IMFnews

Nonprime Lender Citadel Now Actively Hiring Retail LOs; Ends Year with Just Over $500 Million in Originations

Citadel now has offices in California, Georgia, Oregon and plans to open an underwriting and transaction location in Salt Lake City soon.


January 4, 2017 - IMFnews

CFPB Slams TransUnion on Claims About VantageScore, Notes Most Lenders Don’t Use it for Credit Decisions

For years, TransUnion has worked to get mortgage lenders and the GSEs to adopt VantageScore, a move that is still under consideration, according to the Federal Housing Finance Agency.


December 30, 2016 - IMFnews

What We’re Hearing: 10 Mortgage Firms to Keep an Eye on in 2017 – and Why

But if you think that Wells Fargo will pull a “BofA” and quietly downshift its presence in mortgages, think again.


December 30, 2016 - IMFnews

When it Comes to Jumbo Lending, Retail Channel Dominates, By Far

Wells Fargo, for example, reported that 90.7 percent of its third-quarter jumbo originations came through the retail channel…


December 29, 2016 - IMFnews

Bayview Issues $226.4 Million Non-Agency MBS Backed by Seasoned ‘Daily Simple Interest’ Mortgages

The new MBS is backed by 4,274 mortgages that have seasoned for an average of 10.6 years.


December 27, 2016 - IMFnews

Short Takes: Gone for Now: Really Low Rates and No Points / Tracking the Yield on the 10-Year / Why Home Price Gains May Taper Off / Nonbanks Get FHFA’s Approval

“Home prices cannot rise faster than incomes and inflation indefinitely.” – David Blitzer, managing director of the index committee at S&P Dow Jones.


December 27, 2016 - IMFnews

DB and Credit Suisse Settle Legacy MBS Cases with DOJ; Barclays Faces New Lawsuit

Subprime MBS cases continue to haunt Wall Street…


December 22, 2016 - IMFnews

Short Takes: Another Nonprime Lender Gets Rated / MorVest Wraps Up GSE MSR Auction / PennyMac’s Financing Deal / A Bright Idea and Others / BB&T Names New Prez / A Short Publishing Break for IMFnews

Another non-agency lender has received a rating from Fitch: Angel Oak Home Loans...


December 22, 2016 - IMFnews

Fitch Ranked Tops in Rating Non-Mortgage ABS During First Nine Months of 2016

Fitch had a 55.3 percent share of the ABS ratings market through September...


December 22, 2016 - IMFnews

Broker Market Share of Jumbo Production Slips in 3Q16

The retail channel accounted for 91.7 percent of Wells Fargo’s jumbo production during the first nine months of 2016…


December 21, 2016 - IMFnews

New Home-Equity Lender Could Fund $450 Million in 2017; Seeks to Hire LOs

Shellpoint owns part of Spring EQ and both firms have common owners.


December 21, 2016 - IMFnews

Fitch Assigns Subprime Servicer Rating to Citadel. Could a ‘Rated’ Nonprime MBS Deal be Next?

The company doesn’t outsource or offshore any of its servicing activities.


December 21, 2016 - IMFnews

Subservicing Continues to Gain Market Share; Cenlar Maintains Dominance

The privately held Cenlar ended the third quarter with a subservicing market share of 25.6 percent, Inside Mortgage Finance found.


December 21, 2016 - IMFnews

OCC Warns of Credit Risk as Banks Loosen Underwriting Standards for Mortgages

The OCC’s study covers 85 banks that originate first-lien mortgages…


December 20, 2016 - IMFnews

New Penn CEO Jerry Schiano Launches ‘Home Equity’ Lender Targeting the ‘Underserved’

The startup is emphasizing its “user-friendly digital” loan process…


December 20, 2016 - IMFnews

AMC Dominates Third-Party Due Diligence Completed on Non-Agency MBS

Fitch said AMC’s market share of due diligence on non-agency MBS was boosted by the acquisition of JCIII & Associates a year ago.


December 20, 2016 - IMFnews

Interest-Only Originations Falter (For Some) in 3Q16

After PHH Mortgage, the other top IO producers in 3Q16 were JPMorgan Chase, First Republic Bank, MUFG Union Bank, and Citibank.


Poll

HUD has announced a 25 basis point cut in FHA premiums, which is slated to take effect in late January. Is your lending shop for or against a cut in FHA premiums?

For. It should help lending volumes.
Against. The private MI sector should take on this risk, not the government.
Too early to say.
I believe the new White House may scuttle the idea so it doesn’t matter.

vote to see results