Subprime Mortgages

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

March 24, 2017 - Inside MBS & ABS

Banks to Settle Legacy MBS Case; Deutsche Bank’s Class Bid Rejected; Court Favors Collateral Manager

Wells Fargo, Deutsche Bank and the Royal Bank of Scotland have agreed to pay investors $165 million to resolve allegations of misrepresenting the quality of mortgage loans underlying securities issued by now-defunct subprime lender NovaStar Mortgage. The agreement was announced last week subject to approval by Judge Deborah Batts of the U.S. District Court for the Second District of New York, according to a report by Reuters. At issue is $7.7 billion in residential MBS delivered into various trusts and sold to investors, including pension funds, prior to the housing crash. A multi-employer union pension plan led by the New Jersey Carpenters Health Fund filed...


March 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.


March 13, 2017 - Inside the CFPB

CFPB Official Warns Borrowers About Subprime Mortgages

Individuals with bad or no credit who are thinking about taking out a mortgage should proceed with caution if a lender has offered them a subprime loan, an official from the CFPB advised recently. In a blog posting last week, Megan Thibos, a policy analyst with the CFPB’s mortgage markets team, talked about the homebuying process for people with poor credit scores. Thibos suggested that borrowers should review their credit scores, make sure their credit reports are correct, and work to rebuild their credit. Then she detailed various mortgage options available to borrowers with poor credit, focusing on FHA mortgages. That was followed by “a warning about subprime mortgages.” Thibos said subprime mortgages have significantly higher interest rates than prime ...


March 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.


March 3, 2017 - Inside Nonconforming Markets

CFPB Warns Borrowers About Subprime Loans

Potential mortgage borrowers with bad credit or no credit should proceed with caution if they have been offered a subprime mortgage, according to advice from the Consumer Financial Protection Bureau. The CFPB published a blog post this week focusing on the homebuying process for people with “poor” credit scores. The post, part of a series on home purchase advice, was authored by Megan Thibos, a policy analyst with the CFPB’s mortgage markets team. The post suggested that ...


March 3, 2017 - Inside Nonconforming Markets

Ocwen Working Toward Acquiring Servicing

Limitations spanning more than three years on Ocwen Financial’s ability to acquire servicing could be ending soon. Company officials stress that a resumption of servicing acquisitions will help Ocwen see some benefits from economies of scale. In the three years since the New York Department of Financial Services started preventing Ocwen from acquiring servicing, Ocwen’s portfolio has declined by more than 50.0 percent, hitting an unpaid principal balance of $209.09 billion ...


March 3, 2017 - Inside Nonconforming Markets

Subprime Servicing Down, Delinquencies Creep Up

The total unpaid principal balance of subprime mortgages outstanding continued its slow decline in 2016, ending the year at an estimated $255.0 billion, according to Inside Nonconforming Markets. Subprime performance was mixed in the fourth quarter, with the share of loans past due increasing compared with the previous quarter, according to the Mortgage Bankers Association. Some 14.28 percent of mortgages were past due as of the end of the ... [Includes one data chart]


March 3, 2017 - Inside Nonconforming Markets

New Batch of Contributors to Non-Agency MBS

The two issuers that recently entered the non-agency mortgage-backed security market included loans originated by lenders that haven’t been significant contributors to nonprime MBS or jumbo MBS. The $145.02 million nonprime MBS from Invictus Capital Partners included mortgages from 21 lenders, led by Calculated Risk Analytics with a 26.1 percent share of the dollar volume of loans in the deal. Calculated Risk Analytics does business as Excelerate Capital, a wholesale lender ...


March 3, 2017 - Inside Nonconforming Markets

Nonprime MBS from Angel Oak Rated AAA

A planned nonprime mortgage-backed security from an affiliate of Angel Oak Companies received AAA ratings from DBRS and Fitch Ratings. The $146.47 million deal will include credit enhancement of 46.65 percent on the senior tranche. Fitch said the AAA rating for the deal reflects the satisfactory operational review of the contributing lenders conducted by the rating service, 100.0 percent loan-level due diligence review with no material findings, a “Tier 2” representation-and-warranty framework ...


March 3, 2017 - Inside MBS & ABS

Strong Turnout at SFIG Vegas Conference, But Investors Still Largely Lack Confidence in Non-Agency MBS

The SFIG Vegas conference this week set another attendance record for the annual event, demonstrating strong interest in the structured finance market. While investors are comfortable with most asset classes of MBS and ABS, significant concerns remain about non-agency MBS. More than 6,700 people registered for the conference, according to Jade Friedensohn, director of programming at Information Management Network, which produced the conference along with the Structured Finance Industry Group. Potential investors in non-agency MBS continued...


February 24, 2017 - Inside MBS & ABS

Nonprime MBS Sector Buzzing with Activity, New Deals from Angel, Galton and Citadel

The once dormant market for MBS backed by newly originated nonprime loans is beginning to pick up steam, with deals unveiled by affiliates of Angel Oak Home Loans and Galton Funding. But that’s not all. According to industry officials who work in the sector, Citadel Servicing Corp., Irvine, CA, is planning a rated security for some time in May and there’s even talk that bond investing giant PIMCO might get in on the action. Origination and investment banking sources, speaking under the condition of anonymity, told...


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]


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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