Bank of America, Morgan Stanley and Wells Fargo are preparing to issue the first commercial MBS that will comply with risk-retention requirements, according to presale reports published this week. While industry participants continue to debate which type of risk-retention will be more commonly used, the pending $870.56 million MBS will include vertical retention. Wells Fargo Commercial Mortgage Trust 2016-BNK1 received provisional AAA ratings from Fitch Ratings, Kroll Bond Rating Agency and Standard & Poor’s. Fitch said the three originators contributing to the MBS will retain credit risk representing 5.0 percent of pool balance via the vertical retention option. Risk-retention requirements for commercial MBS take effect...

There’s more than $50.0 billion in capital ready to acquire new nonprime home loans, including non-qualified mortgages, according to Dan Perl, chairman and CEO of Citadel Servicing, a nonprime lender. “Liquidity is abundant,” he said last week at the California Mortgage Bankers Association’s Western Secondary Market Conference in San Francisco. “There is a ready market for this and I couldn’t say that two years ago.” William Pendleton, a senior vice president of portfolio lending at Caliber Home Loans, said...

Freddie Mac will publish a new set of disclosures to help the market track the exchange of its legacy MBS with a 45-day payment delay to a 55-day cycle under the new Single Security, according to a new update from the government-sponsored enterprise. A key disclosure involves the creation of “mirror securities” that help investors track how much of an existing MBS has been exchanged for the new securities. Mirror securities will be created for Freddie’s current participation certificates as well as second-level Giants that are comprised of PCs. Before new Single Securities are created, Freddie will create...

One of the largest players in the "new" nonprime mortgage industry is Citadel Loan Servicing, Irvine, CA, which now has a portfolio totaling $600 million.

Banks reported a drop in mortgage-banking income during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of earnings reports from 26 major public companies. But virtually all of the decline came from the four too-big-to-fail banks with over $1 trillion in assets, while regionals posted a substantial increase in mortgage-banking profits. As a group, the 26 banks earned $3.12 billion from mortgage banking during ... [Includes one data chart]

Lenders and servicers are seen as prime targets for cyber criminals that focus on Social Security numbers and bank accounts. Bill Beckmann, president and CEO of MERSCORP, said, “There’s almost nothing more robust” than the information mortgage companies have regarding individual borrowers. Beckmann and Mitch Tanenbaum, a partner at CyberCecurity, a consultant to financial service companies, addressed cyber security issues facing the mortgage industry ...

Panorama Point Partners this summer participated in what it calls a “significant” capital raise for Alterra Home Loans, a Las Vegas-based nonbank started by Hispanic-Americans that’s been on a production tear the past four years, growing originations by upwards of 250 percent every 12 months. If all goes well, AHL hopes to fund $1.3 billion of residential mortgages in 2016, 70 percent of it to minorities, a large chunk of them Hispanics. In short, Alterra sees gold in ...

Most lenders welcome mortgage technology and innovation, but they are divided when it comes to embracing Uber-like industry-wide disruptions, according to new research from Fannie Mae’s Economic & Strategic Research Group. “Today’s consumers access myriad products and services via digital platforms that make it more efficient, simple and pleasant to conduct their business,” said Katrina Jones, vice president of single-family business solutions at ...

Officials at a number of lenders that have significantly increased their business in recent years point to efforts regarding corporate culture as a key factor in the companies’ success. Kurt Reisig, the founder of American Pacific Mortgage, a retail-only lender, said that since starting an effort to focus on corporate culture, APM has doubled its origination volume in the past two years and went from 800 employees to more than 2,000. “Culture eats strategy for lunch every day,” ...

The dramatic expansion of the credit box for loans sold to Fannie Mae and Freddie Mac in the first quarter of this year held steady in the second quarter, according to a new Inside Mortgage Trends analysis of mortgage-backed securities data. In the first quarter, the share of purchase loans sold to the government-sponsored enterprises with credit scores ranging from 620 to 699 jumped by nearly 7 percentage points to 21.4 percent. The low-score share ... [Includes one data chart]