Lone Star Funds is preparing to issue a $216.97 million MBS backed by newly originated nonprime mortgages, according to presale reports published this week. The deal will help the market for new nonprime MBS outpace issuance of jumbo MBS, at least momentarily. Last month, Deephaven Mortgage issued a $154.33 million MBS backed by new nonprime mortgages and Angel Oak Capital Advisors issued a $132.65 million MBS, neither of which received credit ratings. Lone Star’s COLT 2016-2 is scheduled to close next week. Two jumbo MBS were issued...
Investor demand for nonprime whole loans is increasing – which is a good thing for primary market originators – but will it create problems for firms that want to issue securities? In some quarters, there’s a concern that if enough investors appear, it will increase whole-loan prices, making securitization less economical and therefore more difficult. “We’re definitely seeing...
Issuance of single-family agency MBS rose 6.9 percent from July to August, according to a new ranking and analysis by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae issued a combined $138.25 billion of single-family MBS last month, their strongest aggregate monthly output since July 2013. Agency production volume has risen for six straight months since bottoming out in February of this year. Although the purchase-mortgage market has gotten most of the attention in recent months, it was...[Includes two data tables]
Candidate Clinton noted: “But when community banks and credit unions offer mortgages, they’re looking to invest in their neighborhoods and communities to help them grow and prosper…”
Fair housing groups continue to press allegations that Bank of America has neglected foreclosed homes and created eyesores in African-American and Latino communities in more than 200 cities. The National Fair Housing Alliance, along with nine local fair housing organizations, filed an amended federal complaint against BofA last week. In the complaint they added a number of neighborhoods in six additional cities where investigations revealed foreclosed homes that have not been properly maintained. This brings...
Home prices in the U.S. are continuing to rebound – in some cases, nearing their peak before the housing market’s collapse, and in other cases, exceeding their peak. The trending data are stoking anxiety among some market observers that the American housing and mortgage markets are either already in, or dangerously close to, bubble territory. For example, the latest Home Price Index from Black Knight Financial Services now stands at an average of $256,000, up 32.6 percent from the market’s bottom and just 1.1 percent away from a new national peak, based on June 2016 residential real estate transactions. That figure is up 5.3 percent from year-ago levels. Further, home prices in six of the nation’s 20 largest states in mortgage activity reached...