Mortgage originations down at big banks in second quarter; Better does worse in first quarter; loanDepot downsizing; foreclosure activity ramping up; MISMO remains busy.
Moody’s downgraded some of the tranches in loanDepot’s outstanding warehouse financing securitizations even after the company modified the transactions’ governing documents to meet new criteria.
Moody’s placed AAA-rated tranches from four warehouse securitizations on review for potential downgrades following a revision to rating criteria that includes harsher treatment of deals that allow for wet loans.
loanDepot’s IPO fizzled last week. This week, the nonbank’s stock price was up sharply even before the company reported $547.2 million in net income for the fourth quarter.
In January, loanDepot had plans to raise upwards of $362 million via an IPO. On Feb. 11, the offering priced with a reduced share price and fewer shares, generating $54 million.
For the third straight year, in 2018, marketplace lenders held the top spot in the unsecured personal lending space. Meanwhile the share of banks dropped to 28%.