About three years ago, some investors – private equity firms and hedge funds in particular – started purchasing NPLs as a cheaper alternative to buying foreclosed homes.

If rates continue to head south it could result in large hedging losses and markdowns on mortgage servicing rights.

First Tennessee has 172 warehouse customers, compared to 160 a year ago.

Meanwhile, $69.1 billion in FHA purchase and refi loans were securitized in 2Q, a whopping 93.9 percent sequential gain.

Five Oaks issued its first jumbo MBS in April and plans for another deal by the end of September.

The Blackstone Group has finally lifted the 'cone of silence' on its acquisition of mortgage lenders. But will it disclose origination figures?

In general, most nonbanks exited the second lien arena in the wake of the financial crisis.

Will the industry see a flood of nonbanks into the second lien market?

The bank said it is cooperating with the two investigations, which could result in treble damages under The False Claims Act.

More issuers are stepping up to the plate by creating securities collateralized by nonperforming residential loans, but so far the action has mostly taken place in the private-placement market. “There have been a bunch of securitizations of NPLs lately,” one trader told Inside MBS & ABS, “but it’s all been Reg. 144 filings,” a reference to the Securities and Exchange Commission rule that allows for the public resale of restricted collateral if a number of conditions are met ...