With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...
Monex Deposit Company issued a $100.0 million ABS backed by loans on silver and other coins in late December, according to Morningstar Credit Ratings. The deal received a AA rating, with the rating service noting concerns about the volatility of silver prices and regulatory issues. MDC is a precious-metals dealer established in 1987 whose predecessor dates back to 1967. Scala Funding Company 2016-1 consists of 1,854 accounts with an average balance of $51,760. The loans backing the ABS are offered...
United Shore Financial Services of Troy, MI, has agreed to pay $48 million to resolve allegations of FHA-related fraud, adding to the more than $7 billion in settlements and judgments the Department of Justice has collected since 2009. United Shore, parent company of United Wholesale Mortgage and Shore Mortgage, was accused of improperly originating mortgages and falsely certifying compliance with FHA requirements. Originated between Jan. 1, 2006, and Dec. 31, 2011, the loans eventually turned bad, resulting in significant losses to the FHA insurance fund. The complaint did not specify the number and total amount of the bad loans United Shore originated or the size of FHA’s losses on those loans. United Shore was charged with violation of the False Claims Act, becoming the latest financial institution to join a growing list of FHA lenders that have opted to settle, rather than litigate, ...
Residential servicers started 47,955 new foreclosures in the quarter, a 1.6 percent sequential decline, and a whopping 25.3 percent fall compared to a year ago.
A year from now, PHH Mortgage likely won’t be around, at least not as a conventional mortgage-banking franchise that originates residential loans and retains servicing rights. That’s what analysts and investment bankers who follow the stock now believe, especially in light of the company’s recent announcement that it will sell its $72 billion portfolio of Fannie Mae/Freddie Mac mortgage servicing rights to New Residential Investment Corp. for $612 million or 84 basis points. Once completed, the sale – along with a pending disposal of its Ginnie Mae MSR – will leave...
Small servicers have significantly outpaced larger servicers in terms of growth in the past year. While many nonbanks focused on servicing nonperforming mortgages in the past, the more recent growth by small servicers has been in performing mortgages, including those originated in-house. The total unpaid principal balance of single-family mortgages outstanding at the end of the third quarter of 2016 was $10.11 trillion, up by 1.6 percent, according to the Federal Reserve. Growth was...
The Federal Housing Finance Agency late last month issued two final rules that will give the Federal Home Loan Banks somewhat more flexibility in setting collateral requirements for advances and managing their acquired member assets (AMA). A new AMA rule was necessary because the Dodd-Frank Act requires financial regulators to remove references to ratings, which had been used in setting limits on their AMA programs, most of which involve purchases of mortgages from member institutions. Under the new rule, the FHLBanks will be able to choose their own models to determine credit enhancement requirements. The FHFA also deferred...
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