Participants in the post-crisis nonprime mortgage-backed securities market have resisted efforts to brand their deals as “subprime” and for good reason: the loans backing these transactions more closely resemble pre-crisis Alt A mortgages. In fact, some of the underwriting characteristics on new nonprime loans are even stronger than the credit quality on pre-crisis Alt A mortgages, according to an analysis by Inside Nonconforming Markets. Between ... [Includes one data chart]

Impac Mortgage Holdings has continued to increase its production of non-qualified mortgages and plans to issue a $400.0 million mortgage-backed security collateralized by such loans, according to officials at the nonbank. Impac originated $289.60 million of non-QMs in 2016. In the first half of 2017, the nonbank had $416.70 million in non-QM volume. “We’ve seen a decrease in the conforming market and now month-over-month, we’re seeing an increase in the non-QM market ...

Redwood Trust is acquiring enough “expanded-prime” mortgages to put together a non-agency securitization, according to officials at the real estate investment trust. Redwood announced this week that it plans to issue a mortgage-backed security collateralized by loans from its “Choice” program as soon as September. The Choice program allows for somewhat looser underwriting standards than what’s typically seen in the jumbo MBS market, such as slightly higher debt-to-income ratios or ...

The first post-crisis prime non-agency mortgage-backed security from Flagstar Bank looks a lot like other deals issued in recent years, including exceptionally strong underwriting standards. However, the bank did break from the pack slightly with a few features in the new issuance. The $443.79 million Flagstar Mortgage Trust 2017-1 received AAA ratings with credit enhancement of 6.25 percent on the senior tranche. The deal was predominantly backed by non-agency jumbos, but ...

It was thought that Watt, while speaking at the annual convention of the NAREB, might, might say something about the GSE dividend payments...

“We look forward to the attorney general’s views on the constitutional issues raised in our motion to dismiss,” an Ocwen spokesman told IMFnews.

A handful of banks that provide an early look at jumbo origination activity boosted volume in the second quarter of 2017, according to an analysis by Inside Nonconforming Markets. First Republic Bank funded $3.05 billion in single-family originations in the second quarter, up 21.0 percent from the previous period and a 4.1 percent increase from the second quarter of last year. Jumbos account for a large majority of the bank’s total production. “Overall, loan demand is strong, though ...

Ginnie Mae this week announced that processing and issuance of its Platinum MBS are now fully automated – a key step in modernizing the agency’s aging technology and infrastructure. Automated processing will allow current issuers to increase their Platinum volumes as well as potentially draw new issuers into the program, the agency said. Under Ginnie’s Multiclass Securities Program, participating issuers may pool MBS into a single Platinum trust, which issues securities based on the pool. Automation went...

In a move that would benefit the secondary market for loans made by national banks, members in the Senate and the House of Representatives recently introduced legislation to clarify that interest rates on certain loans remain unchanged after the sale or transfer of the loan. In the Senate, Democrat Mark Warner of Virginia late last week introduced S. 1642, which would amend the National Bank Act to clarify that loans which are valid when made remain valid when they’re sold, even to buyers subject to different state law. Similar language would be added to the Home Owners’ Loan Act, the Federal Credit Union Act, and the Federal Deposit Insurance Act. Joining Warner in sponsoring the bill were...

Mortgage investors and lenders alike have a number of questions about underwriting self-employed borrowers under the federal ability-to-repay rule issued by the Consumer Financial Protection Bureau. As the CFPB undertakes a mandatory review of the ATR rule and its qualified-mortgage provisions, the Structured Finance Industry Group pointed to the self-employment issue, starting with how the term is defined and the documentation required by the rule’s Appendix Q underwriting guidance. “Many times, consumers have...