Browse articles from all of our Newsletters related to Nonconforming.

April 24, 2017 - IMFnews

Short Takes: A Major Reorg in the Offing? / 24 States and Ocwen / Arch Readies 1Q17 Results / National MI in Linked Note Deal / Delinquency Figures on Lone Star-Related MBS / Alterra Hires Sales Chief

Arch Capital will issue its quarterly earnings this Wednesday, April 26. It will mark the first earnings release following the Arch Mortgage Insurance purchase of competitor United Guaranty…

April 24, 2017 - IMFnews

‘Fix & Flip’ Lenders Turn to Loan Brokers

Meanwhile, over at the Pasadena, CA-based CALCAP, its use of third-party brokers to make loans is just getting underway.

April 24, 2017 - IMFnews

Loans from Caliber, Sterling Bank in Record-Breaking Nonprime MBS from Lone Star

The Sterling loans tend to have tighter underwriting characteristics than Caliber’s contributions.

April 21, 2017 - IMFnews

Lone Star Prepping a Potentially Record-Breaking Nonprime MBS (Post-Crisis Era)

The pending issuance will largely be backed by purchase mortgages...

April 21, 2017 - IMFnews

1Q17 Non-Agency MBS Issuance Spikes 67 Percent on Heavy Deal Flow Tied to ‘S&D’

Although most of the major non-agency segments posted solid increases, the scratch-and-dent market was the star of the show.

April 20, 2017 - IMFnews

The CFPB and Florida Take Action Against Nation’s 10th Largest Servicer Ocwen; Share Price Gets Crushed

Ocwen added: “The substantive allegations in today’s suit are inaccurate and unfounded.”

April 20, 2017 - IMFnews

Short Takes: Fix-and-Flip Lender Ready to Employ Loan Brokers / Habib Says Rates Will Head Higher / Megabanks Looking at Nonprime Whole Loan Buys? / The Consumer Law Enforcement Agency? / Ditech’s MSR Reduction

We understand that some surprising names are beginning to show up at auctions for nonprime, non-agency whole loans...

April 20, 2017 - IMFnews

ABA: Small Banks Reducing their Share of Non-QM Loans

Most of the banks’ non-QMs received that designation due to high debt-to-income ratios.

April 19, 2017 - IMFnews

Underwriting Standards for Jumbo MBS Return to Norm in 1Q17

Average DTI ratios on prime non-agency MBS range from 30.0 percent to 33.0 percent in any given quarter.

April 19, 2017 - IMFnews

Ocwen Prepares for MSR Acquisition Restrictions to be Lifted, but No Specific Deals are in the Works

Moody’s believes servicing acquisitions by Ocwen will be limited by franchise uncertainty, capital constraints and a highly competitive market…

April 18, 2017 - IMFnews

A Hopeful Sign for a Market in Revival: Nonprime MBS Issuance Up 23 Percent in 1Q17

While the market for nonprime MBS was relatively strong during the first quarter, Moody’s said some investors have shied away from the sector.

April 17, 2017 - IMFnews

Bayview Prepping More Non-Agency MBS Backed by Seasoned Mortgages

Affiliates of Bayview Asset Management will package more than 3,000 seasoned mortgages into Koitere Fund Trust 2017-SPL3 and Bayview Opportunity Master Fund IVa Trust 2017-LL1.

April 14, 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.

April 14, 2017 - Inside Nonconforming Markets

News Briefs

Flagstar Bancorp announced that it’s set to acquire certain assets of Opes Advisors, including the nonbank’s origination unit. Opes focuses on purchase mortgages on the west coast through the retail channel. Opes was the 39th-ranked jumbo lender in 2015, with $1.02 billion in jumbo originations, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Jumbos accounted for 40.6 percent ... [Includes three briefs]

April 14, 2017 - Inside Nonconforming Markets

Lenders Seek Changes to ATR Rule

Congress should make a number of changes to the ability-to-repay rule that would encourage more non-agency lending, according to the Consumer Mortgage Coalition. The CMC represents lenders, servicers and service providers. “The liability for mortgage lending is now so severe that private capital has left the mortgage market and has stayed away,” Anne Canfield, executive director of the CMC, said in testimony last week submitted to a subcommittee of the ...

April 14, 2017 - Inside Nonconforming Markets

Mixed Views on Non-QM Lending

Small banks reduced the share of non-qualified mortgages they originated in 2016, but some nonbanks are expected to significantly increase their activity in the sector. Non-QMs accounted for 9.0 percent of the mortgages originated by participants in the American Bankers Association’s annual real-estate lending survey. Some 159 banks were surveyed by the trade group and about 76.0 percent of the participating institutions had assets of less than $1.0 billion. In 2015 ...

April 14, 2017 - Inside Nonconforming Markets

Ocwen Looks Forward, Emphasis on Compliance

With the potential for restrictions placed on Ocwen Financial to be removed in the near future, officials at the nonbank stress that Ocwen has transformed compared with when the restrictions were applied. Near the end of 2014, Ocwen agreed to a $150.0 million settlement with the New York Department of Financial Services. Among other provisions, the settlement required Ocwen to meet certain benchmarks and receive approval from the state regulator before acquiring ...

April 14, 2017 - Inside Nonconforming Markets

Chase Pushes for More Non-Agency Lending

Private capital needs to return to the mortgage market to make the market less dependent on taxpayers, according to JPMorgan Chase. The company dedicated portions of its latest annual report to call for a number of changes that could increase non-agency lending. According to Chase, a “healthy” non-agency mortgage-backed security market hasn’t resumed eight years after the financial crisis because housing finance reform and other securitization standards ...

April 14, 2017 - Inside Nonconforming Markets

Nonprime MBS Issuance Increases in First Quarter

Issuance of mortgage-backed securities backed by newly originated nonprime mortgages increased in the first quarter of 2017, according to Inside Nonconforming Markets. An estimated $411.36 million in nonprime MBS was issued during the quarter, a 23.2 percent increase from the previous quarter. And no nonprime MBS was issued during the first quarter of 2016. Issuance in the first quarter of this year marked the second best quarter for volume since nonprime MBS activity ...

April 14, 2017 - Inside Nonconforming Markets

Deephaven Packages Angel Oak Loans in MBS

Deephaven Mortgage is preparing to issue a $221.14 million nonprime mortgage-backed security, according to a presale report from S&P Global Ratings. The majority of mortgages in the deal were originated by Angel Oak Mortgage Solutions, a firm that has issued nonprime MBS on its own. While loans from 43 lenders will be included in Deephaven Residential Mortgage Trust 2017-1, Angel Oak accounts for 59.6 percent of the contributions. The other correspondent ...

April 14, 2017 - Inside Nonconforming Markets

Underwriting Standards for Jumbo MBS Return to Norm in First Quarter of 2017

After some tightening in the fourth quarter of 2016, issuers of prime non-agency mortgage-backed securities in the first quarter of 2017 largely returned to the underwriting standards typically seen in the sector, according to an analysis by Inside Nonconforming Markets. Some $2.60 billion of prime non-agency MBS was issued during the quarter, spread across six deals, including a $1.03 billion issuance by JPMorgan Chase. Underwriting ... [Includes two data charts]

April 14, 2017 - IMFnews

‘Tappable’ Home Equity Hit $4.7 Trillion in Late 2016, a 10-Year High

December 2016 represented the 56th straight month of annual home price appreciation, with values rising 5.5 percent over the course of the year…

April 13, 2017 - IMFnews

Nonprime Lenders May See a Banner Year in 2017

“Ever since Trump was elected, we’ve been so busy,” said Citadel founder and CEO Dan Perl…

April 12, 2017 - IMFnews

Still a Better Deal: Selling ‘Conforming’ Jumbos to Fannie and Freddie. But for How Long?

However, conforming jumbos accounted for 36.3 percent of the $1.03 billion non-agency MBS JPMorgan Chase issued in February.

April 11, 2017 - IMFnews

Short Takes: Consumer Complaints Center on Credit Bureaus / LenderLive Completes PHH Deal / New Rez Issues Non-Agency MBS / Ben Carson’s ‘Listening Tour’ Arrives in Jacksonville, FL / Norcom Opens Denver Branch

LenderLive hired a majority of the former PHH employees and rebranded the private-label facility...

April 7, 2017 - IMFnews

Annaly Buying More Non-Agency Whole Loans

As its footprint in the residential credit market expands, counterparties are looking to Annaly as a source of liquidity…

April 6, 2017 - IMFnews

Angel Oak Tops Contributors to New Nonprime MBS from Deephaven

Deephaven is headed by former Goldman Sachs managing director Matt Nichols, who earlier this year predicted strong growth for the correspondent buyer of non-QM loans…

April 5, 2017 - IMFnews

Short Takes: Mortgage Interest Deduction Could be Neutered / Trump Getting Close on Pam Patenaude for HUD Deputy Post / DocMagic Posts Strong Growth / Chimera Busy with Seasoned MBS / Fannie Mae Official Leaves for Due Diligence Firm

It appears the Trump White House is once again seriously considering Pam Patenaude to be the deputy HUD secretary...

April 5, 2017 - IMFnews

After Being Smacked Down by Regulators, Ocwen Says It’s Been Transformed

In an interview, Ocwen’s chief compliance officer said: "We are a fully-transformed company and very anxious to break away from some of the regulatory constraints..."

April 5, 2017 - IMFnews

Three Walter Board Members Give Notice, Annual Shareholders Meeting Looms

Employee turnover is becoming a trend at Walter. Two weeks ago, the company's chief legal officer Jonathan Pedersen resigned.

April 4, 2017 - IMFnews

Short Takes: Skyline Posts Strong Purchase Lending Numbers / Banks and CUs Pony Up to the IO Bar / Flagstar’s New Wealth Advisory Business / Thanks to AVMs and Google Earth, All Appraisers May be Toast / Frommeyer Leaves NAMB

A former Utah appraiser said she lost her job to AVMs and now drives a bus for $40,000 a year...

April 4, 2017 - IMFnews

Fast-Growing Nonprime Lender Angel Oak Adds Four Executives, Aims to Double Sales Force

Angel Oak employs 52 wholesale account executives and hopes to add three to four additional ones a month.

April 4, 2017 - IMFnews

Origination of IO Mortgages Spiked by Almost 37 Percent in 2016

PHH Mortgage, which is restructuring its operations, was the top ranked interest-only lender in 2016…

April 3, 2017 - IMFnews

While Conventional Lending Faces Challenges, Nonprime May Soar

Angel Oak competitor Citadel Servicing Corp., Irvine, CA, is planning to come to market with its first deal, a rated security that could top $160 million…

April 3, 2017 - IMFnews

Deephaven Mortgage Preparing a $223 Million Nonprime MBS

Deephaven operates solely as a secondary market buyer of whole loans...

April 3, 2017 - IMFnews

Prime Non-Agency MBS Bounces Back in 1Q17

Just two firms – Redwood Trust and JPMorgan Chase – continued to dominate jumbo issuance in the first quarter…

March 31, 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 31, 2017 - Inside Nonconforming Markets

News Briefs

Ocwen Financial announced that it signed an agreement with the New York State Department of Financial Services this week to terminate the state regulator’s third-party operations monitor at Ocwen on April 14. Ocwen said the agreement provides a path for the nonbank to receive approval from the NYDFS to resume acquiring mortgage servicing rights. The Structured Finance Industry Group is preparing the next phase of its effort to revive the non-agency ... [Includes two briefs]

March 31, 2017 - Inside Nonconforming Markets

BofA Faces Stiff Penalty for Single Foreclosure

A U.S. bankruptcy fudge slapped Bank of America with $45.0 million in punitive damages last week for its handling of a mortgage foreclosure. “Franz Kafka lives,” Judge Christopher Klein wrote in his opinion, citing the author known for writing about complex or illogical situations. “This case reveals that he works at Bank of America.” The lawsuit, Sundquist v. BofA, centers on a jumbo mortgage originated in 2008 by a broker and acquired by Countrywide Home Loans ...

March 31, 2017 - Inside Nonconforming Markets

ARM Originations Increase, Market Share Declines

Originations of adjustable-rate mortgages increased in 2016 but didn’t keep pace with the overall growth in mortgage originations during the year, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $212.0 billion in ARMs were originated last year, up 6.5 percent from 2015. ARMs accounted for 10.3 percent of total originations in 2016, down from an 11.5 percent share the previous year. ARM originations also declined ... [Includes one data chart]

March 31, 2017 - Inside Nonconforming Markets

Shelter Growth Issues Its Second Nonprime MBS

An affiliate of Shelter Growth Capital Partners issued a $119.87 million mortgage-backed security backed by newly originated nonprime mortgages this week. It’s the second nonprime MBS from SG Capital Partners, following a $113.71 million deal in October. The new issuance is fairly similar to the previous MBS from the firm, including relatively large loan balances and many adjustable-rate mortgages. SG Residential Mortgage Trust 2017-1 included mortgages with an ...

March 31, 2017 - Inside Nonconforming Markets

Lenders Divided on Portfolio QM Proposal

A proposal in Congress to define all mortgages held in portfolio as qualified mortgages has some bipartisan support, but lenders are divided on the matter. “I caution the use of portfolios to add loans that are not standard,” said David Motley, president of Colonial Companies and chairman-elect of the Mortgage Bankers Association. “The rules of the qualified mortgage, I believe, should be the same for everybody.” He made the remarks this week at a hearing by the ...

March 31, 2017 - Inside Nonconforming Markets

IO Mortgage Originations Increase in 2016

Originations of interest-only mortgages increased in 2016 compared with the previous year, based on volume from 12 lenders tracked by Inside Nonconforming Markets. The group originated $40.52 billion in IOs during the year, a 36.5 percent increase from the previous year. All but one of the lenders increased their IO production compared with 2015, with many posting gains higher than 50.0 percent. IOs can’t receive qualified-mortgage status ... [Includes one data chart]

March 31, 2017 - Inside Nonconforming Markets

Annaly Buying More Whole Loans

Annaly Capital Management is buying more non-agency whole loans, including non-qualified mortgages. The large real estate investment trust is using infrastructure it acquired from Hatteras Financial last year to complete the whole-loan expansion. Annaly’s residential credit group invests in non-agency mortgage assets, including whole loans and mortgage-backed securities. The group had $2.50 billion in assets as of the end of 2016, with whole loans accounting for ...

March 31, 2017 - Inside Nonconforming Markets

Conforming Jumbos Could Boost Non-Agency MBS

Lenders originating so-called conforming-jumbo mortgages that are eligible for sale to the government-sponsored enterprises continue to see better execution by delivering those loans to Fannie Mae and Freddie Mac instead of packaging them in non-agency mortgage-backed securities. However, conforming jumbos accounted for 36.3 percent of the $1.03 billion non-agency MBS JPMorgan Chase issued in February. And other banks could follow in placing such ...

March 31, 2017 - Inside Nonconforming Markets

Prime Non-Agency MBS Bounces Back in Early 2017, Pricing Strong

Issuance of prime non-agency mortgage-backed securities increased by 65.3 percent in the first quarter of 2017 compared with the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Some $2.60 billion in prime non-agency MBS were issued in the first quarter. Volume was boosted by relatively strong demand from investors, the emergence of a new participant and the return of a firm that has largely ... [Includes one data chart]

March 31, 2017 - IMFnews

Shelter Growth Issues its Second Nonprime MBS

The mortgages backing the new nonprime MBS from Shelter Growth have a weighted-average interest rate of 6.11 percent.

March 30, 2017 - IMFnews

Short Takes: A Good Idea, Says Bright / Stop the Presses: An Emerging Bipartisan Consensus on GSE Reform! / Here Comes the Flood (in Six Months) / loanDepot Retaining Jumbos / CarVal’s Non-Agency MBS

Stop the presses: a consensus on GSE reform is here! Really?

March 29, 2017 - IMFnews

MBA Cautions Against Defining All Loans Held in Portfolio as Qualified Mortgages

The portfolio QM proposal is supported by many Republicans along with some Democrats...

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…


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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