In a potentially significant shift, Wells Fargo has set aside $507.0 million in mortgages for inclusion in a non-agency mortgage-backed security. Wells is the top jumbo lender and some industry analysts suggest that the jumbo MBS market won’t rebound until banks like Wells stop retaining production in portfolio. Wells said loans designated as held-for-sale for a future MBS are nonconforming mortgages that would have otherwise been stored in its portfolio. Although no other details about ...
First Republic Bank and Flagstar Bank increased their originations of jumbo mortgages during the second quarter of 2018. First Republic funded $3.13 billion in single-family originations during the quarter. Jumbos account for the vast majority of its production. Originations by First Republic were up by 34.3 percent from the previous quarter and up by 2.6 percent from the second quarter of 2017. Jim Herbert, chairman and CEO of First Republic, said the bank was able to boost production even though ...
There’s a sharp divide in the mortgage industry regarding the prospects for originations of non-qualified mortgages. Smaller nonbanks that focus on such products have high hopes for the non-QM sector while larger lenders have low expectations. Justin Mahoney, a senior portfolio manager at SG Capital Partners, a non-QM lender, noted that the nonprime mortgage originations market is the only lending sector that hasn’t recovered since the financial crisis. “It represents a real growth opportunity ...
Lending units affiliated with Angel Oak Companies reported a record $512.0 million in originations of non-qualified mortgages for the second quarter of 2018, putting the nonbank on pace to top $1.0 billion in production this year. Angel Oak’s non-QM production increased by 52.0 percent from the previous quarter and nearly doubled its originations of a year ago. Angel Oak’s various production entities added 104 employees during the second quarter for a total of 527 staff members ...
Annaly Capital Management plans to include a much higher share of non-qualified mortgages in its latest non-agency mortgage-backed security than the first deal issued by the real estate investment trust this year. Non-QMs will account for 45.4 percent of the $383.5 million issuance, according to presale reports by Fitch Ratings and Kroll Bond Rating Agency. Annaly’s first MBS was largely stocked with loans that had seasoned for at least 10 years – well before the QM rule came along ...
Redwood Trust plans to raise $103.13 million with the sale of 6.25 million shares of common stock. The sale closed this week, though the underwriters of the transaction have 30 days to purchase up to an additional 937,500 shares of Redwood’s common stock, which could provide the real estate investment trust with up to $116.9 million in net proceeds after transaction expenses. The sale follows an offering of convertible senior notes in Redwood in June with a principal amount of $200.0 million ...
Moves by three issuers of prime non-agency mortgage-backed securities to allow for third-party due diligence reviews to be completed on fewer than 100 percent of the loans in an MBS could increase the risk of losses for MBS investors, according to Moody’s Investors Service. In a report released this week, Moody’s said narrower due diligence reviews increase the likelihood of defective loans appearing in non-agency MBS. The rating service added that representations ... [Includes five briefs]
Both FHA and VA saw measurable declines in the number of seriously delinquent loans during the second quarter, although early-stage default rates were up slightly. A new Inside FHA/VA Lending analysis of Ginnie Mae mortgage-backed securities data found timely payments being made for 93.6 percent of FHA loans and 96.7 percent of VA loans at the end of June. Those numbers were off slightly from the first quarter, when seasonal factors typically lead to the lowest delinquency rates of the year. The increase in late payments was concentrated in loans that were one or two months overdue. There were 419,366 FHA and VA loans in this category at the end of June, up 13.5 percent from the end of March. They represented 4.13 percent of total FHA and VA loans in Ginnie MBS. FHA delinquency rates were substantially higher than those in the VA program, and the number of early-stage delinquencies ... [Charts]
According to the newspaper, Watt – a former Democratic Congressman from North Carolina – is under investigation for alleged sexual harassment of an employee.
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