The majority of loans in expanded-credit mortgage-backed securities are adjustable-rate mortgages, while such loans are few and far between in prime non-agency MBS, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]
More competition is coming into the nascent business of aggregating non-qualified mortgages and issuing mortgage-backed securities drawn by the market’s potential for profitable growth.
Redwood Trust, which helped pioneer the return of the jumbo mortgage-backed securities market earlier in the decade, reported net earnings of $33.0 million for the second quarter, down 29.7 percent from the previous period.
Citadel Servicing Corp., Irvine, CA, originated $389.3 million of non-qualified mortgages during the second quarter, a 32.3 percent sequential gain, according to figures the company provided to Inside Nonconforming Markets this week.
Some post-crisis jumbo mortgages that experienced a foreclosure or other liquidation led to large losses even though the properties experienced significant home-price appreciation, according to an analysis by Kroll Bond Rating Agency.
loanDepot is an “average” originator of prime jumbo mortgages and loans eligible for sale to the government-sponsored enterprises, according to Moody’s Investors Service.
Accounting issues related to a prior acquistion led to a $97.4 million net loss for the second quarter at Impac Holdings, the nonbank reported this week. Despite significant challenges in the market, the company managed to boost its production of home loans that don’t meet the qualified-mortgage standard.
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