With 2018 winding down, issuers of non-agency mortgage-backed securities introduced two new deals this week. Neuberger Berman is set to issue its second expanded credit MBS of the year while Verus Mortgage Capital is planning its second deal backed by nonprime loans for investment properties. Neuberger Berman’s Homeward Opportunities Fund I Trust 2018-2 will be a $320.1 million deal and Verus Securitization Trust 2018-INV2 will be a $254.8 million issuance. Sprout Mortgage ...
Brokers and correspondents looking for nonprime lenders to work with should consider the benefits provided by firms with vertical integration, according to a recent white paper by Citadel Servicing Corp. Citadel happens to be a vertically-integrated lender with wholesale and correspondent operations along with a servicing platform. The lender defined vertical integration as the combination of two or more stages of production at one company as opposed to the stages ...
Originations of interest-only mortgages declined by 6.6 percent on a sequential basis in the third quarter among a group of lenders surveyed by Inside Nonconforming Markets. Total first-lien mortgage originations declined by 2.2 percent in that span. Fifteen lenders originated $4.74 billion of IOs in the third quarter. Some 33 percent of the lenders managed to increase their IO production on a quarterly basis, with large gains at Citadel Servicing, PNC Mortgage and ... [Includes one data chart]
The Consumer Financial Protection Bureau proposed new policies this week regarding no-action letters and the establishment of a “product sandbox.” The proposal aims to help financial services companies develop innovative products. Lauren Saunders, associate director of the National Consumer Law Center, was highly critical of the proposal, claiming that it could “wipe out consumer protection laws for entire industries.” She said the proposal is certain to ... [Includes four briefs]
FHA officials have sounded alarms over the rising concentration of higher-risk loans in new business. An exclusive new Inside FHA/VA Lending analysis shows they have good reason to be concerned. (chart)
Correspondent-production platforms regained a smidgeon of market share in government-insured lending during the third quarter, according to a new Inside FHA/VA Lending analysis. (chart)
The ability to extract more equity at a lower price appears to be driving the growth in FHA cash-out volume, according to an Urban Institute analysis of FHA’s FY 2018 report on the financial condition of the Mutual Mortgage Insurance Fund.
Mortgage-backed securities analysts are recommending that Ginnie Mae temporarily place VA cash-out refinance loans with high loan-to-value ratios in custom pools until the VA implements new rules to curb churning in cash-out refis.
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