Nonbank mortgage operations continued their assault on the agency MBS market in 2018, increasing their penetration in both new issuance and servicing. [Includes two data charts.]
Activity in the non-agency mortgage market is likely to get a boost from any reforms of the government-sponsored enterprises undertaken by the Trump administration.
An affiliate of Annaly Capital Management this week issued a non-agency mortgage-backed security stocked with investment-property mortgages eligible for sale to the government-sponsored enterprises.
Lone Star Funds, an affiliate of Caliber Home Loans, is set to issue a nonprime mortgage-backed security with some of the least seasoned loans seen in a post-crisis deal.
Redwood Trust announced last week that it plans to acquire 5 Arches, an originator and asset manager of business-purpose real estate loans. Redwood acquired a 20 percent stake in the lender last year with an option to fully ac-quire the Irvine, CA-based company.
The ability-to-repay rule helped improve loan performance for non-qualified mortgages but a robust secondary market for the loans hasn’t developed, according to an analysis by the Consumer Financial Protection Bureau.
The loans included in expanded-credit mortgage-backed securities in the fourth quarter of 2018 had on average tighter underwriting than previous issuance. [Includes one data chart.]
Two prominent players in the jumbo market reported mixed trends in originations for the fourth quarter. First Republic Bank’s single-family mortgage originations increased slightly on a sequential basis, while Flagstar Bank saw a sharp drop in jumbo lending.
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