Issuance of prime jumbo mortgage-backed securities is on the rise but underwriting standards for loans in the deals aren’t changing much, according to a new analysis by Inside Nonconforming Markets. Some $4.23 billion of prime jumbo MBS was issued in the first quarter of 2018, the highest quarterly volume for the sector since the first three months of 2015. Issuers in the sector have largely maintained super-prime underwriting standards since the financial crisis ... [Includes two data charts]
Chimera Investment, JPMorgan Chase and Redwood Trust plan to issue new prime non-agency mortgage-backed securities in the coming weeks, adding to momentum in a market where most issuers are optimistic about production volume. The planned CIM Trust 2018-J1 would mark a return to the jumbo MBS market for Chimera. The real estate investment trust has focused its issuance efforts on seasoned mortgages in recent years after dabbling in jumbo MBS around 2012 ...
Full third-party due diligence reviews were completed on only 20.0 percent of the loans being pooled by Flagstar Bank into a new non-agency mortgage-backed security. Rating services delivered mixed assessments of the due diligence sampling rate, which could set a standard for the market. The $704.1 million Flagstar Mortgage Trust 2018-2 is scheduled to close at the end of the month. DBRS, Fitch Ratings, Kroll Bond Rating Agency and Moody’s Investors Service all ...
SG Capital Partners is set to issue its first rated nonprime mortgage-backed security after bringing to market some unrated deals in recent years and aggregating loans in a rated nonprime MBS issued by a competitor. Morningstar Credit Ratings and S&P Global Ratings assigned preliminary AAA ratings to the planned $140.1 million SG Residential Mortgage Trust 2018-1 last week. Somewhat unusually, the rating services came up with different figures on the share of non-qualified mortgages ...
An affiliate of Invictus Capital Partners is set to issue a unique non-agency mortgage-backed security backed by loans on investor properties that differs from the structure of typical single-family rental deals. Invictus’s Verus Mortgage Capital predominantly focuses on non-qualified mortgages and has issued deals backed by non-QMs along with a sprinkling of mortgages on investment properties. Many other nonprime MBS issuers have brought similar deals. The planned $258.4 million ...
Redwood Trust is set to issue a “bespoke” prime non-agency mortgage-backed security. The deal largely looks like other MBS from Redwood, but a spokesperson for the real estate investment trust said the MBS was tailored for one investor. Kroll Bond Rating Agency placed preliminary ratings on the planned $338.7 million Sequoia Mortgage Trust 2018-4 last week. The deal is scheduled to close on April 20. There are only minor differences between the MBS and three other ...
The steamship that is the nonbank share of the mortgage servicing market showed no signs of changing course in the early months of 2018, a new Inside Mortgage Finance analysis reveals. [Includes two charts.]
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