Impac Mortgage, one of the better known non-QM lenders, funded $75.0 million in such loans during the first quarter of 2016, up from $50.8 million in the previous quarter.

“To hedge, or not to hedge” sounds like something William Shakespeare might have written if he were around today making mortgages...

Investor Unite’s Tim Pagliara said that a stay would prejudice him under Virginia law, where the case is to be “expedited” and could be resolved on the merits…

A surge of new refinance business and a seasonal uptick in purchase-mortgage activity helped lift agency issuance of single-family MBS in April, according to a new Inside MBS & ABS analysis and ranking. Fannie Mae, Freddie Mac and Ginnie Mae produced $108.95 billion of new single-family MBS last month, the strongest monthly output since September 2015. Gross new issuance was up 9.8 percent from March, but on a year-to-date basis, production was still down 3.9 percent from the volume generated in the first four months of 2015. Ginnie saw...[Includes two data tables]

Industry participants are gearing up for non-agency MBS backed by non-qualified mortgages, but don’t expect a flood of volume anytime soon. Four non-agency MBS backed by new nonprime mortgages were issued in 2015, the largest of which was a $150.35 million deal from Angel Oak Capital Advisors. None of the deals were subject to risk-retention requirements that took effect at the end of 2015 and none were rated. A rating on a non-QM MBS could improve...

Angel Oak Capital Advisors is working on what should turn out to be its second nonprime mortgage securitization of the past six months, a deal that should be similar in size to its first offering of roughly $150 million, Inside MBS & ABS has learned. A source close to the company, who spoke under the condition his name not be used, could not commit to an exact issuance date except to say the security could be issued “soon.” To date, investor interest in the small amount of nonprime/non-qualified mortgage deals that have come to market has been...

Banks generally eased their lending standards for most types of residential mortgage loans in the first quarter of 2016, even as consumer demand for such credit increased, according to the Federal Reserve’s latest senior loan officer opinion survey. During the period ending March 31, a “moderate net fraction” of banks reported having eased standards on mortgages eligible for purchase by the government-sponsored enterprises, Fannie Mae and Freddie Mac, while a similar number of institutions indicated they had eased standards on “qualified mortgage” and non-QM jumbo mortgages, as well as on QM non-jumbo, non-GSE-eligible and on non-QM, non-jumbo residential mortgage loans. At the same time, banks left...

Federal banking regulators have proposed a “net stable funding ratio” for depositories with more than $250 billion in assets that aims to ensure that large banks’ lending and investing activities are sufficiently supported by sources of stable funding over a one-year horizon. The proposed NSFR would require banks to calculate a weighted measure of the stability of their equity and liabilities over a one-year time horizon, known as the available stable funding, or ASF, and calculate their level of required stable funding (RSF) over the same one-year period. Beginning in 2018, the proposed rule would require...

Private shareholder lawsuits against the U.S. Treasury’s net worth sweep of Fannie Mae and Freddie Mac profits are inching forward, including a squabble over the Federal Housing Finance Agency’s bid to consolidate several cases in one court. The Federal Housing Finance Agency said the proposed transfer would prevent future “copycat” cases and ensure a more consistent ruling across the board by having all of the cases heard in one court instead of scattered in different jurisdictions throughout the country. Private plaintiffs, including Tim Pagliara, director of shareholder group Investors Unite, filed...

Fannie Mae and Freddie Mac trimmed their retained mortgage investment portfolios in the first quarter of 2016 by a combined 2.8 percent. The Federal Housing Finance Agency directed the government-sponsored enterprises to wind down their portfolios by 15 percent each year until they reach $250 billion by 2018. At the end of the first quarter, Fannie’s mortgage-related investment portfolio dropped to $332.6 billion, a 3.6 percent decline from December 2015. The biggest drop was in the GSE’s non-agency MBS holdings, which fell 21.3 percent in the first quarter to just $13.3 billion, roughly one tenth the amount held back in the heyday of the subprime and Alt A MBS markets. Fannie plans...[Includes one data table]