Subprime Mortgages

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

May 29, 2015 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.

May 29, 2015 - Inside Nonconforming Markets

Not Much Breathing Room for Non-Agency

Real estate investment trusts and new investors in the mortgage business could provide funding for nonconforming lending, but securitization remains challenged, according to various experts at the recent secondary market conference sponsored by the Mortgage Bankers Association. The non-agency mortgage-backed securities market is very subdued, said Laurie Goodman, director of the Housing Finance Policy Center at the Urban Institute. Issuance has been running at about ...

May 29, 2015 - Inside MBS & ABS

Bumpier Roads May Be Ahead for Auto Lenders, Prime and Subprime Alike, According to S&P

Slowing growth, looser underwriting and increasing regulation are likely to tap the brakes on the joyride U.S. auto lenders have enjoyed in recent years, according to recent research from Standard & Poor’s Ratings Service. “Despite the robust performance of the auto sector in the past few years, we believe bumpier roads may lie ahead,” S&P Credit Analyst Igor Koyfman said in a recent report. “As lenders compete for market share, they have extended loan terms and increased the average financing amount, while yields have declined.” Lenders have also increased...

May 22, 2015 - Inside Mortgage Trends

Deephaven’s Nonprime Production a Mystery

Seven months ago, a fledgling nonprime lender called Deephaven Mortgage unveiled a $300 million investment in the firm by a global “alternative” hedge fund called Varde Partners, Minneapolis. But since then, not much has been heard about Deephaven. Then again, it might be said that the “new” nonprime industry is still trying to figure out how to operate in a world of tight regulation, non-QM lending and a securitization market that doesn’t want to touch its product. Matt Nichols, the former Goldman Sachs managing director who formed Deephaven two years ago, did not respond...

May 21, 2015 - Inside Mortgage Finance

Class Certification Denied in Bank’s Fair-Lending Suit; Groups Sue Fannie for Bad REO Practices

In a ruling that may impact future fair-lending class actions, a federal district court judge in Manhattan has denied class certification in a lawsuit brought by the American Civil Liberties Union and National Consumer Law Center against global investment bank Morgan Stanley. Filed in October 2012, the suit was brought on behalf of African American borrowers in Detroit who obtained subprime loans from New Century Mortgage, a now-defunct originator that sold the loans to secondary-market purchasers, including Morgan Stanley, which then securitized them. New Century originated...

May 15, 2015 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.

May 15, 2015 - Inside Nonconforming Markets

No ‘Going Concern’ Qualification for Ocwen

Ocwen Financial filed its annual report for 2014 this week and noted that its auditors decided against requiring a “going concern” qualification for the nonbank. “We believe the filing of our annual report, without a qualification as to our ability to operate as a going concern, is additional evidence that our strategy to strengthen our compliance management system, strengthen the service we provide to our customers and improve our financial stability is working and that confidence ...

May 15, 2015 - Inside Nonconforming Markets

Division in Decline of GSEs’ Nonprime Holdings

A sharp divide in the decline of nonprime mortgages held by the government-sponsored enterprises persists, according to a new analysis by Inside Nonconforming Markets. Holdings of nonprime mortgage-backed securities are down much more sharply at Fannie Mae and Freddie Mac than the GSEs’ holdings of purchased or guaranteed nonprime loans. Fannie and Freddie held a combined $50.78 billion in nonprime MBS as of the end of ... [Includes one data chart]

May 15, 2015 - Inside Nonconforming Markets

Subprime Performance Continues to Improve

Performance of subprime mortgages continues to improve as the volume of loans outstanding slowly declines. Some $320.0 billion in subprime mortgages were outstanding as of the end of the first quarter of 2015, according to estimates by Inside Nonconforming Markets. Volume was down 4.2 percent from the previous quarter and 16.0 percent from the first quarter of 2014. The total past-due rate for subprime mortgages fell to 17.60 percent ... [Includes one data chart]

May 15, 2015 - Inside MBS & ABS

Mortgage Firms Turn to Debt Securities as IPO Market Stays (Mostly) Closed for Now

Privately held nonbank mortgage firms – and even some public ones – increasingly are contemplating issuing more debt securities as a way to fund growth. The reliance on debt is seen as a more attractive alternative than going public, which can leave too much of a young company in the hands of outside parties that are merely looking for a quick profit after a lender lists its stock. Then again, not too many mortgage companies are contemplating...

May 4, 2015 - Inside the CFPB

CHLA Calls For Disclosures Of MLO Qualifications

The Community Home Lenders Association recently sent a letter to CFPB Director Richard Cordray, asking the bureau to require consumer disclosures on each mortgage loan that indicate whether the mortgage loan originator working on that loan is licensed. Such disclosures also should show whether the MLO has passed the SAFE Act test, and has completed an independent background check and SAFE Act approved pre-licensing and continuing education courses. CHLA also recommended that consumers be told if their loan originator previously failed (and never passed) the SAFE Act test or has ever been denied a state license because they failed a background check. “The CFPB is carrying out its ‘Know Before You Owe’ initiative, to improve consumer understanding and mortgage disclosures” ...

May 1, 2015 - Inside Nonconforming Markets

Subprime Volume Indicators and Performance

A page of subprime and jumbo data.

May 1, 2015 - Inside Nonconforming Markets

News Briefs

Walter Investment Management’s Green Tree Servicing agreed to pay $48 million for consumer redress and a $15 million civil money penalty due to a settlement with the Consumer Financial Protection Bureau and the Federal Trade Commission. The federal regulators alleged that Green Tree failed to honor modifications for loans transferred from other servicers, among other issues. The regulators said a large number of loans Green Tree acquired from ... [Includes two briefs]

May 1, 2015 - Inside Nonconforming Markets

Ocwen Sees Higher Margins in Non-Agency Market

Ocwen Financial’s renewed focus on the non-agency market includes plans for much higher margins than what the nonbank produced servicing and originating agency mortgages. However, officials at Ocwen stressed this week that the nonbank is not completely exiting the agency servicing market. Michael Bourque, an executive vice president and CFO at Ocwen, reported that the nonbank had a pre-tax income margin of 33 percent in 2012. By 2014, Ocwen’s margin had declined to ...

May 1, 2015 - Inside MBS & ABS

More Lenders Prepare to Launch Non-QM Products. But Will Any of Them Securitize?

New lenders that specialize in loans that don’t meet the government’s qualified-mortgage standards continue to draw up blueprints and raise capital – or at least try to – but very few of them are banking on securitization as a take-out strategy. However, all that may change with the launch of LendSure Financial Services, a San Diego startup headed by a handful of veterans from the subprime industry of yesteryear, including Jim Konrath, Stu Marvin and Joe Lydon. According to one non-agency investor briefed on LendSure’s plans, securitization is...


Mortgage originators have been stepping up their hiring of late. Which category of mortgage workers are in highest demand at your shop? (Choose one.)

Loan officers
Processors and underwriters
Tech support/programming
Secondary marketing
VP level and higher
We need a good CEO

vote to see results
Housing Pulse