Subprime Mortgages
Browse articles from all of our Newsletters related to Subprime Mortgages.
May 16, 2012 - Mortgage Beat
Overall Delinquency Rates Drop, MBA Survey Finds
The overall delinquency rate for mortgage loans declined on both seasonally adjusted and unadjusted bases during the first quarter of 2012, according to the Mortgage Bankers Association. Announcing the results of its quarterly analysis of mortgage delinquencies and...
May 15, 2012 - Mortgage Beat
Ocwen Officials Surprised by Nationstar Bids
During Ocwen Financial’s conference call earlier this month regarding earnings for the first quarter of 2012, William Erbey, chairman of Ocwen, said he was surprised to be outbid by Nationstar Mortgage on a recent portfolio acquisition. “It certainly is a little puzzling ...
May 11, 2012 - Inside FHA Lending
Beware of Conflicting FHA Rules, Standards
Mortgage servicers could find themselves in a quandary as they implement the national servicing standards outlined in the March foreclosure settlement agreement, especially if they run into conflicting FHA requirements. Compliance experts say that while many of the settlement standards could be carried out within the FHA program without being at odds with existing FHA requirements, conflicts do exist with the guidelines that cannot be resolved. Even when it is technically possible to comply with both FHA guidelines and the settlement standards, it is still going to ...
May 11, 2012 - Inside Nonconforming Markets
Subprime Volume Indicators and ABX Prices
A half page of subprime and jumbo data.
May 11, 2012 - Inside Nonconforming Markets
Two Harbors Sees Profits in ‘Cottage Industry’
Two Harbors Investment started acquiring residential properties to offer for rent during the first quarter of 2012, with officials at the real estate investment trust anticipating strong profits from the venture. The final step in establishing an infrastructure for the program was a February agreement with Silver Bay Property Management. “Silver Bay creates the opportunity to bring in institutional excellence to this sector, which heretofore has largely been ...
May 11, 2012 - Inside Nonconforming Markets
Walter to Diversify Loan Acquisition Methods
After growing significantly via the acquisition of portfolios and subservicing, special servicer Walter Investment Management is looking to increase its servicing assets in different ways. Walter is close to establishing delinquency flow programs and will soon increase its agency originations. “The company currently expects to close one delinquency flow program in the second quarter with an additional program to come in the second half of the year,” Walter said this week ...
May 11, 2012 - Inside Nonconforming Markets
Non-Agency Servicers Vary on HAMP Outreach
American Home Mortgage Servicing ranked as the most active servicer in consumer-outreach efforts under the Home Affordable Modification Program, according to new data reported by the Treasury Department. Performance by other non-agency servicers varied, and even American Home lagged in some categories. As of the end of March, American Home was the only HAMP servicer among the top 10 to contact or evaluate 100 percent of its borrowers potentially eligible for HAMP. The servicer had evaluated a whopping ... [Includes one data chart]
May 11, 2012 - Inside Nonconforming Markets
Ocwen Focusing on Principal Mods, Diversification
Ocwen Financial has been a leader in principal-reduction loan modifications and officials at the company suggest the mods give Ocwen a competitive advantage over other servicers. The advantage could come into play as bank servicers look to complete required principal-reduction mods as part of the recent $25 billion servicing settlement. “I think we’ve done as many principal-reduction mods as the rest of the industry combined ...
April 27, 2012 - Inside Nonconforming Markets
Subprime Volume Indicators and ABX Prices
A half page of subprime and jumbo data.
April 27, 2012 - Inside Nonconforming Markets
DBRS this week said seven firms are approved to provide third-party due diligence on non-agency mortgage-backed securities rated by the company. The companies are Allonhill, American Mortgage Consultants, Clayton, Digital Risk, Opus, RMG and R.R. Donnelley. Meanwhile, CoreLogic announced last week that Standard & Poor’s has approved the company as a third-party due diligence provider for non-agency MBS ... [Includes four briefs]
April 27, 2012 - Inside Nonconforming Markets
Non-Agency Short Sales Increase; Shorter Timelines
Short sales on mortgages included in non-agency mortgage-backed securities have increased sharply in the past year, as a percentage of total distress property dispositions, according to analysts at Deutsche Bank Securities. The loss mitigation technique is seen as beneficial for borrowers, portfolio servicers and non-agency MBS investors, especially compared with foreclosure costs and timelines. “Short sales typically result in faster resolution and significantly higher principal recovery,” the analysts said. Short sales accounted for about ...
April 27, 2012 - Inside Nonconforming Markets
Mixed Views on Lender-Placed Insurance
Regulatory scrutiny of lender-placed insurance is increasing, but non-agency servicers claim that they are compliant with existing and impending regulations for such insurance coverage. The Consumer Financial Protection Bureau is focusing on lender-placed insurance, provisions were also included in the recent $25.0 billion servicing settlement, Fannie Mae recently updated its policies and a number of state investigations are underway. “There appear to be a number of very significant problems with ...
April 27, 2012 - Inside Nonconforming Markets
Option One Settles Non-Agency Claims with SEC
The company formerly known as Option One reached a $28.2 million settlement with the Securities and Exchange Commission this week regarding issuance of subprime mortgage-backed securities in early 2007. The SEC said Option One’s MBS “operated as a fraud or deceit” against non-agency MBS investors. “The offering documents misled investors about Option One’s precarious financial condition and, hence, its inability to fulfill its obligations on its own to repurchase ...
April 27, 2012 - Inside Nonconforming Markets
CFPB Close to Issuing ‘Qualified Mortgage’ Rule
Facing a deadline set by the Dodd-Frank Act for the beginning of 2013, the Consumer Financial Protection Bureau is working on an ability-to-repay rule to define “qualified mortgages.” While industry participants have warned that few non-QMs will be originated, Raj Date, deputy director of the CFPB, said the regulator hopes to ensure that “prudent loans” will benefit from sufficient investor appetite and a competitive market. “We want to avoid any inappropriate disincentive that would prevent lenders from making ...
April 27, 2012 - Inside MBS & ABS
BayernLB Files Securities Fraud Lawsuit Charging Deutsche Bank With Selling ‘Crap’ Residential MBS
Germany’s second largest state-owned bank is looking to the U.S. courts for relief after accusing Deutsche Bank of perpetuating a fraud on it in the sale of over $810 million in toxic residential MBS. Last week, Bayerische Landesbank (BayernLB) filed suit against Deutsche in New York State Supreme Court in Manhattan alleging that Deutsche packaged risky and poor quality loans into securities while simultaneously taking short positions against the securities. According to the complaint, Deutsche officials internally disparaged the quality of the loans underlying the residential MBS even as it...
April 27, 2012 - Inside MBS & ABS
Option One Settles Charges Over Subprime MBS Issuer’s Inability to Honor Repurchase Demands
Option One Mortgage Corp. this week agreed to pay $28.2 million to settle charges brought by the Securities and Exchange Commission over the former subprime lender’s MBS disclosures regarding its ability to cover repurchase demands. Much of the litigation over failed non-agency MBS has focused on alleged misrepresentation about the quality of the loans delivered to securitization trusts, the servicing of those loan pools and the performance of trustees. The Option One settlement stems from the SEC’s contention that the company, one of the leading subprime lenders and securitizers during the heyday of...
April 20, 2012 - Inside MBS & ABS
Moody’s New Subprime Servicer Cash Flow Metric Finds Quick, Effective Resolutions Are Critical
Moody’s Investors Service has come up with a new metric that evaluates how much cash a subprime mortgage servicer generates from loan modifications and liquidations versus how much it loses through loss mitigation and inaction on delinquent loans. A quick resolution may be the single most decisive factor in maximizing cash flow, whether it’s an effective loan modification or an outright foreclosure and liquidation. “It’s better to do it quickly,” said Peter McNally, a vice president and senior analyst at Moody’s who contributed to the development of the metric. “A modification is good if you make the...
April 13, 2012 - Inside Nonconforming Markets
Subprime Volume Indicators and ABX Prices
A half page of subprime and jumbo data.
April 13, 2012 - Inside Nonconforming Markets
The $25 billion servicing settlement involving five major bank servicers was approved by the US District Court for the District of Columbia on April 4 without a formal challenge from the Association of Mortgage Investors or anyone else. The servicers and settlement monitor Joseph Smith will agree on deadlines to implement the settlement’s various provisions, with the deadlines to be set between 60 days after approval of the settlement and up to 180 days after approval ... [Includes four briefs]
April 13, 2012 - Inside Nonconforming Markets
Subprime Credit Standards Loosening Somewhat
Subprime lending standards appear to be loosening across numerous asset classes, including home loans, but it is still difficult for borrowers to get a subprime mortgage. Equifax recently reported that subprime originations have grown as of the end of 2011 compared with the end of 2010. The company’s National Consumer Credit Trends Report was produced with Moody’s Analytics, and included details on credit cards, auto finance, consumer finance, retail credit and student loans. “The evidence of increased lending to subprime consumers demonstrates banks’ ongoing efforts to ...
April 13, 2012 - Inside Nonconforming Markets
Ocwen Closes Saxon Acquisition, With Some Issues
Ocwen Financial last week completed its acquisition of mortgage servicing rights from Morgan Stanley’s Saxon Mortgage Services. Ocwen won some concessions from the seller since the sale was announced in October, though the servicer also faces criticism regarding its expanding portfolio. Ocwen acquired MSRs with an unpaid principal balance of $22.2 billion, largely comprised of non-agency mortgages. Ocwen had been subservicing $9.9 billion of the MSRs. Ocwen also acquired $2.7 billion in subservicing agreements from Saxon. The base purchase price for the Saxon transaction was ...
April 13, 2012 - Inside Nonconforming Markets
Springleaf Issues Another AAA Subprime MBS
Springleaf Finance completed another subprime mortgage-backed security comprised of vintage performing loans this week, its second such MBS in eight months. However, the firm is facing significant financial difficulties and stopped offering mortgages at the beginning of the year. The $473.01 million subprime MBS received a AAA rating from Standard & Poor’s, just like Springleaf’s $496.86 million subprime MBS in September. As with the previous security, the latest MBS was backed by seasoned performing loans, an average of six years-old in this case ...
April 13, 2012 - Inside Nonconforming Markets
CFPB Targets Servicing ‘Surprises, Runarounds’
The Consumer Financial Protection Bureau this week detailed servicing rules it will soon propose regarding disclosures to borrowers and servicing procedures. “The mortgage servicing rules we are considering reflect two basic, common sense standards – no surprises and no runarounds,” CFPB Director Richard Cordray said. “They would apply to all mortgage servicers regardless of how they are organized, including banks, thrifts, credit unions and nonbank servicers.” The rule, which will amend the Truth in Lending Act and Real Estate Settlement Procedures Act, is required by the Dodd-Frank Act. The CFPB said it will publish a proposal ...
April 10, 2012 - Mortgage Beat
The Top Holders of Home-Equity Loans
This week’s issue of Inside Nonconforming Markets will include a ranking of the top 50 banks and thrifts in total home-equity lending business. Overall, banks and thrifts held $1.18 trillion in home-equity lines of credit, HELOC commitments and closed-end seconds at the end of...
April 6, 2012 - Inside Mortgage Trends
While the word “subprime” often brings housing loans to mind, a new study by Equifax shows that subprime borrowers seeking access to credit cards and auto financing are having an easier time. Lending to subprime consumers for bank credit cards increased 41 percent on a year-over-year basis, with the bankcard limits at their highest since 2008, while retail credit card limits grew 6 percent. Subprime borrowers now comprise 46 percent of the auto finance market, with loan amounts up 14 percent since 2010. Total new auto loan originations hit a six-year high in December 2011...
April 6, 2012 - Inside MBS & ABS
Prudential Finds Investor Interest for an Innovative $1 Billion Hybrid “Covered Trust” Subprime Deal
Prudential Financial last week utilized a unique hybrid MBS/covered bond structure to finalize a $1.0 billion bond secured by vintage subprime MBS. Standard & Poor’s, which gave Prudential Covered Trust 2012-1 an A rating, said the original balance of the MBS was approximately $2.8 billion. Proceeds from the sale of the notes are being used to buy a pool of MBS from Prudential Insurance. The issuer will then sell investors the Class A notes and the proceeds will be passed through to Prudential Financial. The underlying certificates are expected to generate sufficient cash flows to make the...
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Most Popular Stories
- Flurry of Deals Scrambles Top Servicer Ranking In Early 2012, Nationstar to be Fourth Largest
- CFPB Taking on Origination Points and Fees
- Freddie Hires a New Chief Executive Officer and Other Things Affecting the GSEs
- Ocwen Officials Surprised by Nationstar Bids
- Overall Delinquency Rates Drop, MBA Survey Finds
