Issuance of expanded-prime non-agency mortgage-backed securities is heating up with a new participant in the market and a quick second deal from Redwood Trust. Ellington Financial is preparing to issue its first non-agency MBS, which will largely consist of non-qualified mortgages originated by LendSure Mortgage. Morningstar Credit Ratings and S&P Global Ratings assigned preliminary AAA ratings to the deal this week. “Ellington Financial’s ability to access the robust securitization markets ...
Redwood Trust increased its acquisitions of jumbo mortgages in the third quarter, helped by strong demand for jumbo mortgage-backed securities. The real estate investment trust acquired jumbos with a total unpaid principal balance of $1.50 billion in the third quarter, up 25.0 percent from the previous period and up 15.4 percent a year ago. Officials said spread tightening helped the REIT compete with banks for jumbos. In the third quarter, Redwood closed two super-prime jumbo MBS with ...
“A significant reduction in the corporate tax rate would result in a significant net loss, and that could result in a loss for the year,” said Fannie CEO Timothy Mayopoulos…
Nonprime lenders allow credit scores as low as 500 and loan-to-value ratios up to 90.0 percent, but new originations don’t typically reach such extremes. According to an analysis by Inside Nonconforming Markets, the average credit score on loans in nonprime/Alt A mortgage-backed securities issued in recent years was 701.1. The average combined LTV ratio for the loans was 74.9 percent and the average debt-to-income ratio was 37.0 percent. The analysis ... [Includes one data chart]
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