Subprime Mortgages

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

December 9, 2016 - Inside MBS & ABS

RMBS Market Will Keep Evolving in 2017 With More Varied Collateral, New Structures

New non-agency MBS issued in 2017 will likely include more diversified collateral and feature some structural changes, analysts at Moody’s Investors Service said in a new report this week. The rating service projected that non-agency prime jumbo volume will remain steady in 2017, while issuers will continue to explore non-traditional asset types, such as re-performing and non-performing loans, reverse mortgages, non-qualified mortgages and nonprime transactions. “Although prime jumbo deals will start to include loans with slightly lower FICOs and higher loan-to-value ratios than those loans included in 2016 transactions, collateral quality will remain...


December 2, 2016 - 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.


December 2, 2016 - Inside Nonconforming Markets

News Briefs

Lone Star Funds is set to issue a mortgage-backed security backed by new nonprime mortgages, according to documents filed with the Securities and Exchange Commission this week. It will be the third MBS from the COLT shelf this year. AMC Diligence said it reviewed 486 mortgages with a total unpaid principal balance of $235.40 million for the planned MBS. The mortgages were originated by Caliber Home Loans, LendSure Mortgage and Sterling Bank & Trust ... [Includes two briefs]


December 2, 2016 - Inside Nonconforming Markets

Caliber Seen as Effectively Managing Growth

Caliber Home Loans has significantly increased its servicing portfolio – including subprime mortgages – in recent years. While rapid growth by nonbank servicers has raised some concerns among industry analysts, S&P Global Ratings said Caliber has effectively managed its growth to this point. Caliber is one of the few servicers that has increased subprime servicing volume in recent years, and officials at the company have plans for further growth. To this point, Caliber’s servicing growth has ...


December 2, 2016 - Inside Nonconforming Markets

Subprime Performance Improves, Portfolios Decline

Performance of subprime mortgages continues to improve as the amount of loans outstanding declines. Some $265.0 billion in subprime mortgages were outstanding as of the end of the third quarter, according to estimates by Inside Nonconforming Markets. Only a small volume of new subprime mortgages have been originated since 2008, and in the past couple of years, large transfers of subprime servicing have been limited, prompting subprime servicing to ... [Includes one data chart]


November 23, 2016 - Inside MBS & ABS

Court Grants Cert in NovaStar; FHLB Claims versus RBS Dismissed; Ally Settles; Nomura/RBS to Pay Up

A U.S. district court judge in New York has certified a class of investors to move forward with mortgage-related fraud claims they have brought against three large banks. MBS investors led by plaintiff New Jersey Carpenters Health Fund sued units of Wells Fargo that were acquired from Wachovia Capital Markets, Royal Bank of Scotland and Deutsche Bank that helped underwrite $7.7 billion of MBS issued by failed subprime lender NovaStar Mortgage. The plaintiffs accused...


November 18, 2016 - 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.


November 17, 2016 - Inside Mortgage Finance

Government-Insured Lending Soared In 3Q16 While Jumbo Market Eased Up

Most of the lift in third-quarter mortgage originations came from the tail end of the refinance boom, especially in the agency market, according to a new Inside Mortgage Finance analysis. The government-insured market saw a hefty 21.4 percent jump in mortgage originations from the second to the third quarter as the sector reached an estimated $159.0 billion and accounted for 27.4 percent of total first-lien production. It was the second consecutive record quarter for FHA, VA and Department of Agriculture rural-housing production. The conventional-conforming segment was not far behind...[Includes two data tables]


November 11, 2016 - Inside MBS & ABS

Goldman Sachs to Settle CDO Case; Nomura to Pay $3M to NCUA; REIT Accused of Excessive Fees

Goldman Sachs has agreed to pay an undisclosed settlement amount to ACA Financial Guaranty Corp. to resolve allegations of fraud related to insurance on a collateralized debt obligation backed by subprime mortgages. Details of the Abacus CDO settlement were not disclosed, although ACA initially sought $120 million in damages. First filed in 2011, ACA’s lawsuit accused Goldman Sachs and hedge fund Paulson & Co. of fraudulently persuading it to guarantee payments on the CDO prior to the financial crisis. ACA alleged...


November 11, 2016 - Inside MBS & ABS

Non-QM/Subprime Lenders Seek Ratings That Could Help Them Boost Securitization Volume

As the new breed of subprime lenders continues to increase originations, these firms are now actively pondering whether they should approach the rating agencies about getting their firms rated. Dan Perl, founder and CEO of nonprime/non-QM lender Citadel Servicing, Irvine, CA, said his firm has approached Fitch Ratings and hopes to get rated as both a servicer and originator. Perl believes some of his competitors are going down the same path as well. He told...


November 4, 2016 - 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.


November 4, 2016 - Inside Nonconforming Markets

GSEs Continue to Sell Nonprime Holdings

The government-sponsored enterprises continued to sell their holdings of vintage nonprime mortgages and non-agency mortgage-backed securities during the third quarter of 2016. Fannie Mae and Freddie Mac stopped acquiring such assets after the financial crisis, but the loans and MBS routinely account for an outsized share of credit losses at the GSEs. Fannie and Freddie held nonprime mortgages with a total unpaid principal balance of ... [Includes one data chart]


November 4, 2016 - Inside Nonconforming Markets

Ocwen Closer to Being Able to Acquire Servicing

Officials at Ocwen Financial said the nonbank is close to resolving outstanding issues with state regulators which could allow the firm to resume acquiring mortgage servicing rights. However, the non-agency servicing acquisitions market is subdued, and Ocwen is putting an emphasis on originations. Ocwen significantly increased its servicing portfolio via acquisitions until enforcement actions by state regulators limited its ability to acquire MSRs. The consent order from the ...


November 4, 2016 - Inside Nonconforming Markets

First Nonprime MBS from Shelter Growth Affiliate Backed by Many Non-QM Loans

An affiliate of Shelter Growth Capital Partners issued a $113.71 million nonprime mortgage-backed security last week, according to offering documents obtained by Inside Nonconforming Markets. SG Residential Mortgage Trust 2016-1 is the first MBS from Shelter Growth’s SG Capital Partners. Shelter Growth is an investment manager and hedge fund with $1.08 billion in assets under management as of June 1, according to a filing with the Securities and Exchange Commission ...


November 4, 2016 - Inside MBS & ABS

Shelter Growth Expands Fledgling Nonprime MBS Market With Deal Backed Largely by Non-QM Loans

An affiliate of Shelter Growth Capital Partners issued its first nonprime MBS late last week, according to offering documents obtained by Inside MBS & ABS. The $113.71 million deal included non-qualified mortgages from a number of lenders. The mortgages in SG Residential Mortgage Trust 2016-1 were acquired by SG Capital Partners, an affiliate of Shelter Growth, an investment manager and hedge fund. SG Capital Partners started acquiring non-agency mortgages in January 2015. As of June 1, Shelter Growth had...


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