Subprime Mortgages

Browse articles from all of our Newsletters related to Subprime Mortgages.

July 15, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


July 15, 2016 - Inside Nonconforming Markets

Investors Push for Upgrade of Ocwen’s Ratings

Investors in non-agency mortgage-backed securities serviced by Ocwen Financial released a report this week calling for Standard & Poor’s to upgrade Ocwen’s servicer ratings. In June 2015, S&P downgraded Ocwen Loan Servicing’s servicer ratings to “below average,” citing regulatory issues and investor scrutiny along with concerns about internal audits at Ocwen. The downgrade is a focus for some investors because some of the non-agency MBS serviced by Ocwen have ...


July 15, 2016 - Inside Nonconforming Markets

Impact of Deal Agent Differs Based on Type of MBS

The costs and benefits of a deal agent will vary based on loan characteristics, according to a new analysis by Fitch Ratings. Costs for jumbo mortgage-backed securities will be relatively low, while costs for nonprime MBS will be higher, along with potentially greater benefits when assessing the representations and warranties on a deal. Non-agency MBS issuers continue to work toward including a deal agent in new transactions as some investors have called for the feature ...


July 8, 2016 - Inside MBS & ABS

Verizon to Issue the First U.S. ABS Backed by Cell Phone Payment Plans, AAA Ratings Assigned to $1.17 Billion Deal

Verizon Wireless is preparing to package the payment plans on more than 3.09 million cell phones into an ABS, marking the first time an ABS in the U.S. will be backed by such collateral. The planned $1.17 billion Verizon Owner Trust 2016-1 received preliminary AAA ratings from Fitch Ratings and Standard & Poor’s. “It’s the most interesting type of consumer ABS product we’ve seen in a long time,” said Darrell Wheeler, head of research for global structured finance at S&P. “And obviously, with the amount of phones in the market today, it has a lot of potential.” Analysts at Moody’s Investors Service noted...


July 1, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


July 1, 2016 - Inside Nonconforming Markets

Ocwen Settles HAMP Lawsuit; Avoids Downgrade

Ocwen Financial faced mixed results in servicing litigation recently while avoiding further downgrades of its corporate issuer default rating. Last week, Ocwen announced that it had agreed to settle two lawsuits brought by the Department of Justice involving the Home Affordable Modification Program and FHA mortgages. The pending $30 million settlement involves alleged violations of the False Claims Act, among other issues. The lawsuits were brought in 2012 by ...


July 1, 2016 - Inside Nonconforming Markets

HSBC Settles 2002 Subprime Lawsuit for $1.58B

HSBC Finance announced in June that it reached a $1.58 billion settlement on a subprime mortgage-related lawsuit filed back in 2002. The shareholder class-action lawsuit centered on activities by Household International, which was acquired by HSBC for $14.6 billion in 2003. The lawsuit claimed Household International and officials at the company made false or misleading statements about predatory lending practices, the quality of its loan portfolio, and the company’s ...


July 1, 2016 - Inside Nonconforming Markets

Lone Star Deal Promising for Nonprime MBS

The nonprime mortgage-backed security issued last week by Lone Star Funds could spur an increase in MBS backed by non-qualified mortgages, industry analysts say. The $161.71 million COLT 2016-1 Mortgage Loan Trust was the first MBS backed by non-QMs to receive a rating. Some 51.8 percent of the mortgages in the deal were non-QMs. All of the mortgages were originated by Lone Star’s Caliber Home Loans. The A-1 tranche of the MBS priced at spread of ...


July 1, 2016 - Inside MBS & ABS

Downgrades for MBS and ABS Still Relatively Limited With Few Defaults and Strong Loan Performance

Upgrades of ratings on structured finance products hit an all-time high in 2015, according to a study released this week by S&P Global Ratings. The study tracked ratings across sectors and the world, while the U.S. residential MBS sector showed mixed performance. S&P said it had 30,359 ratings outstanding on global structured finance securities at the beginning of 2015. During the year, 9.8 percent of the ratings were upgraded. The rating service said upgrades in 2015 were most prevalent on structured credit deals in Europe and the U.S. Some 11.2 percent of S&P’s ratings were downgraded...


June 24, 2016 - Inside MBS & ABS

U.S. Court Shifts Discovery Obligation to MBS Plaintiff, NY Court Denies JP Morgan, ACLU in MBS Case

A federal appeals court in New York this week will hear arguments from African-American subprime borrowers in Detroit in connection with a proposed class action challenging Morgan Stanley’s mortgage securitization practices during the subprime mortgage boom. The American Civil Liberties Union and its partners are seeking class-action status for the borrowers’ Fair Housing Act claims, which were initially rejected by a lower court. The court previously ruled that each borrower would have to sue on his or her own. The issue on appeal at the U.S. Court of Appeals for the Second Circuit is...


June 17, 2016 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.


June 17, 2016 - Inside Nonconforming Markets

News Briefs

Overture Technologies announced this week that it added support for trended credit data to its automated underwriting system for non-agency mortgages. Trended credit data detail a potential borrower’s use and repayment of revolving credit over time. “Lenders, particularly those specializing in loans to borrowers with previous bankruptcy or housing defaults, can leverage this data to understand how consumers have managed their use of ... [Includes six briefs]


June 17, 2016 - Inside Nonconforming Markets

Few Delinquencies on Caliber’s Non-Agency Loans

Performance data on nonprime mortgages originated by Caliber Home Loans in recent years suggest that it’s possible to originate loans to borrowers who don’t qualify for agency financing without experiencing major delinquencies. Caliber started originating non-agency mortgages in its portfolio loan program in the fourth quarter of 2014. None of the mortgages have been 60 or more days past due, according to a term sheet for a pending nonprime mortgage-backed security ...


June 17, 2016 - Inside Nonconforming Markets

Lone Star to Issue First Rated Nonprime MBS Backed by Post-Crisis Originations

Lone Star Funds is preparing to issue a $161.71 million nonprime mortgage-backed security that will close next week. COLT 2016-1 Mortgage Loan Trust received an A rating from DBRS and Fitch Ratings. The deal marks the first nonprime MBS backed by new originations to receive a rating since the financial crisis. It will also be the largest post-crisis nonprime MBS issued to date, topping a $150.35 million MBS from Angel Oak Capital Advisors in December. Officials at Fitch Ratings said ...


June 17, 2016 - Inside MBS & ABS

MBS Outstanding Held Steady in Early 2016; Foreign Buyers, Pension Funds Boost Holdings

The outstanding supply of single-family MBS in the market fell slightly in the first quarter, but you have to go two paces to the right of the decimal point to see it. A new Inside MBS & ABS analysis indicates that outstanding MBS totaled $6.407 trillion as of the end of March. That was down 0.01 percent from the previous quarter, stalling a steady expansion of the market that took place in 2015. And with a modest 0.2 percent increase in total single-family mortgage debt outstanding, the modest contraction in MBS nudged...[Includes two data tables]


Poll

The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.
Better by 11% to 25%.
Off the charts better. Applications are great now.
Worse than 1H, but not by much.
A lot worse. But not sure on the damage.

vote to see results
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