Subprime Mortgages

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

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

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

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

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 MBS & ABS

Blackstone’s Next Mortgage Conquest: Fix-and- Flip Lenders That Could Lead to Securitization

Wall Street giant The Blackstone Group this week revealed its investment in “fix and flip” lenders B2R Finance, Charlotte, and Jordan Capital Finance, Chicago, spurring talk that eventually the firm may enter the fledgling nonprime residential market. One nonprime executive, requesting anonymity, told Inside MBS & ABS that he has had several discussions with Blackstone-related companies about partnering with his shop. Issuing MBS is one of the company’s goals, he said, adding: “They want in.” Over the past three years, Blackstone has made...


February 17, 2017 - Inside MBS & ABS

New Nonprime MBS from Invictus Illustrates How Rating Services Differ on AAA Ratings

Rating services appear to be taking differing approaches to rating nonprime MBS backed by new originations. The first nonprime MBS from an affiliate of Invictus Capital Partners received preliminary AAA ratings from Kroll Bond Rating Agency, Morningstar Credit Ratings and S&P Global Ratings. Those three firms did not rate...


February 16, 2017 - Inside Mortgage Finance

Delinquencies Increase on a Quarterly Basis At the End of 2016, Foreclosures Decline

Mortgage delinquencies in the fourth quarter of 2016 hit their highest level of the year, erasing declines from the previous quarter, according to the Inside Mortgage Finance Large Servicer Delinquency Index. The foreclosure rate continued to decline, hitting levels last seen in 2007. Among the servicers tracked by the index, the total mortgage delinquency rate was 5.05 percent as of the end of the fourth quarter. The rate was at 5.54 percent at the end of 2015 and declined each quarter until the most recent period. Each delinquency bucket increased...[Includes one data table]


February 9, 2017 - Inside Mortgage Finance

Record Pace for Government Market Lost Steam in Late 2016 As Purchase-Mortgage Lending Swooned

Conventional mortgage originations held steady during the fourth quarter of 2016, but the government-insured market saw a noticeable downturn, according to a new Inside Mortgage Finance ranking and analysis. Production of conventional mortgages that fit under the purchase limits for Fannie Mae and Freddie Mac actually edged up 1.3 percent from the third quarter, hitting an estimated $322.0 billion. That was the sector’s strongest three-month origination volume since the second quarter of 2013, when lenders pumped out $363.0 billion of conventional-conforming loans. Jumbo mortgage originations were...[Includes two data tables]


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

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 ...


January 27, 2017 - Inside MBS & ABS

AFSA Panelists Say Subprime Auto Lending Market Healthy Despite Rising Delinquencies

The subprime auto lending market is stable and the underwriting is strong, but delinquencies are up, according to credit bureau experts speaking at the American Financial Services Association’s vehicle financing conference. The auto financing industry is coming off another record year of sales, according to Chris Stinebert, president and CEO of AFSA. He added that it’s important for credit reporting agencies to set the record straight on the health of the subprime auto finance market. “The fact is...


January 27, 2017 - Inside MBS & ABS

A Bullish Sign for Nonprime/Non-QM MBS: Three of The Most Active Originators Are Working on Deals

Three of the nation’s most active nonprime mortgage originators – Citadel Loan Servicing, Angel Oak and Deephaven Mortgage – are all working on new MBS deals, a bullish sign for a market that has been mostly dormant for years. Executives at all three shops confirmed to Inside MBS & ABS this week their intention to bring new MBS to market – most likely through rated transactions. As for details, that’s a different matter. All three are...


January 26, 2017 - Inside Mortgage Finance

Lenders Show Few Signs of Easing Underwriting Standards; Meanwhile, Existing Nonprime Lenders are Bullish

With the post-election interest-rate rise sticking around, there’s a growing school of thought that residential originators will finally ease underwriting standards in an effort to boost lending volume. But the way things stand today, that could be wishful thinking. The Mortgage Bankers Association told Inside Mortgage Finance this week that its Mortgage Credit Availability Index shows a “gradual” loosening has occurred, but it credits a greater availability of jumbo product for the reading. As MBA Senior Vice President of Research Michael Fratantoni put...


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

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 13, 2017 - Inside MBS & ABS

Non-Agency MBS Production Tumbled Sharply In 2016; Nonprime Sector Showed Some Life

In 2016, a mere $42.93 billion of non-agency MBS were issued, down 32.5 percent from the previous year, according to a new Inside MBS & ABS ranking and analysis. It was the second-lowest annual output since 2012. The picture would look a bit brighter if Fannie Mae and Freddie Mac credit-risk transfer deals were included, as well as single-family rental securitizations, which both compete for the investors that might be interested in non-agency MBS. But the government-sponsored enterprise CRT deals are debt issues and they couldn’t be any more “agency,” while the SFR securitizations look a lot more like commercial MBS than residential MBS. The prime jumbo market hit...[Includes three data tables]


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

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

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 MBS & ABS

Auto ABS Could Suffer Some Dents This Year, But Credit Card ABS Performance Should be Stable

With structured finance performance having peaked for many sectors, analysts at Fitch Rating and S&P Global Ratings anticipate some modest asset-level deterioration in 2017 – most notably in both prime and subprime auto ABS. On the other hand, they expect relatively stable performance from credit card ABS. “Both prime and subprime auto ABS loss rates could be...


January 6, 2017 - Inside MBS & ABS

Deutsche Bank and Credit Suisse Agree to Separate Settlements of RMBS Complaints; DOJ Sues Barclays

Two Wall Street banks have agreed to separate settlements with the Department of Justice to resolve civil claims related to their issuance and underwriting of nonprime residential MBS leading up to the financial crisis. Under the terms of the settlements, Credit Suisse and Deutsche Bank have agreed to pay the DOJ $2.48 billion and $3.1 billion, respectively, related to the securitization, underwriting and issuance of residential MBS prior to 2008. In addition, Credit Suisse ($2.8 billion) and Deutsche Bank ($4.1 billion) will provide...


January 6, 2017 - Inside MBS & ABS

Angel Oak Gears Up for New Non-Agency MBS, While PIMCO and Citadel May Tap the Market Later in 2017

With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...


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