Redwood Trust worked for years to revive the jumbo MBS market by issuing deals with super-prime mortgages. Now, the firm is shifting its focus somewhat to “expanded prime” mortgages that have slightly looser underwriting standards. The $316.49 million Sequoia Mortgage Trust 2017-CH-1 is the first MBS from Redwood to deviate from super-prime standards. The deal received preliminary AAA ratings this week from Kroll Bond Rating Agency and Moody’s Investors Service. The average combined loan-to-value ratio of the mortgages in the MBS is...
Although Fannie Mae, Freddie Mac and Ginnie Mae have all granted consumer forbearance on homes damaged by this season’s hurricanes, servicers must continue to make payments to MBS investors in most circumstances, a situation that could affect thinly capitalized nonbanks. In particular, smaller privately held nondepositories that became Ginnie issuers this decade could face some financial headwinds, depending on how heavily concentrated their business has been in the Texas Gulf region and south Florida. As Inside MBS & ABS went to press late this week, it was...
A handful of large banks continued to retreat from the business of servicing home loans for other investors during the second quarter of 2017, according to a new Inside Mortgage Trends analysis of call reports. Commercial banks and savings institutions reported that they serviced $3.627 trillion of residential mortgages for other investors, typically mortgage-backed securities trusts, as of the end of June. That was down just 0.4 percent from the previous period ... [Includes one data chart]
In late August, a notice appeared on the website of the Federal Trade Commission under the banner of the agency’s “pre-merger notification program,” identifying Wells as the winning bidder…
The delinquency rate on residential mortgages increased slightly in the second quarter, suggesting that years of improvements could be leveling off. The mortgage delinquency rate increased from 4.32 percent at the end of March to 4.39 percent at June 30, according to the Inside Mortgage Finance Large Servicer Delinquency Index. The delinquency rate reading remained below the 4.99 percent level seen at the midway point in 2016. “Market normalization has slowed...[Includes one data table]
Although the National Credit Union Administration and a top CU trade group favor allowing credit unions to buy mortgage servicing rights in the secondary market, don’t look for these “nonprofit” depositories to become significant players anytime soon. At least that’s the opinion of a handful of investment bankers and others who ply their trade in the MSR market. For starters, CUs are not...
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