Since the end of December, at least $7.4 billion in seasoned mortgages have been securitized through Fannie Mae and Freddie Mac, a trend that appears to be gaining steam, especially among small- to medium-sized lenders. In early April, Inside MBS & ABS reported that Bank of America contributed $5.4 billion of seasoned loans (three months or older) to Freddie Mac MBS, which helped make the bank Freddie’s largest seller in the first quarter. A follow-up inquiry to BofA yielded...
VA Clarifies HUD-1 Itemization Requirements. The Department of Veterans Affairs’ Home Loan Guaranty office has issued guidance clarifying HUD-1 documentation and itemization requirements. The HUD-1 is a statement lenders furnish to borrowers at closing showing the actual settlement costs, including amounts paid to and by the settlement agent. The guidance clarifies and establishes VA policy regarding the following: itemization of lender/seller credits in the 200 series of the HUD-1; itemization of line 801 on the HUD-1; clarification that credits reflected on line 803 of the HUD-1 cannot offset allowable fees’ and itemization of line 802 on the HUD-1. Ginnie Mae Announces Update to Securitization of USDA Section 538 Multifamily Loans. Ginnie Mae has enhanced the securitization of rural, multifamily housing loans with a Department of Agriculture guaranty to make affordable housing available to ...
One thing investors and analysts look for is revenue growth and Ocwen Financial did not deliver. But at least all of its lending licenses are intact...
VA home loan guaranty originations nearly caught up with FHA single-family volume in the first quarter of 2015, thanks to a strong pickup in veteran loan refinancings, an Inside FHA/VA Lending analysis of Ginnie Mae issuance data indicated. Refi loans accounted for 58.5 percent of VA loans securitized in the first quarter compared to just 34.4 percent of FHA loans in Ginnie mortgage-backed securities. Approximately $35.0 billion in VA loans were securitized in Ginnie Mae MBS in the first quarter, up 5.5 percent from the fourth quarter of 2014. On the other hand, $35.6 billion of FHA loans were securitized during the same period, down 1.8 percent from the prior quarter. Of the VA loans in Ginnie MBS, $14.5 billion were purchase mortgages, mostly delivered through retail and loan correspondents. Brokers accounted for only 8.5 percent of the purchase loans. Securitized VA purchase volume, however, was ... [2 charts]
Ocwen Financial’s renewed focus on the non-agency market includes plans for much higher margins than what the nonbank produced servicing and originating agency mortgages. However, officials at Ocwen stressed this week that the nonbank is not completely exiting the agency servicing market. Michael Bourque, an executive vice president and CFO at Ocwen, reported that the nonbank had a pre-tax income margin of 33 percent in 2012. By 2014, Ocwen’s margin had declined to ...
Credit Suisse and Redwood Trust, the two dominant jumbo mortgage-backed securities issuers since 2010, continue to differ in terms of jumbo MBS offerings. While their latest deals include a number of similarities involving credit characteristics, the Redwood deal includes a relatively high share of non-qualified mortgages. The $356.45 million Sequoia Mortgage Trust 2015-2 received AAA ratings with credit enhancement of 5.00 percent on the senior tranche. That’s the lowest ...
Five Oaks Investment this week issued its first jumbo mortgage-backed security, although the real estate investment trust has contributed to jumbo MBS issued by others. The $267.19 million Oaks Mortgage Trust Series 2015-1 received largely favorable reviews from the rating services, though Five Oaks’ lack of a track record in the jumbo MBS market helped prompt credit enhancement of 8.45 percent on the senior tranche. Both Fitch Ratings and Moody’s Investors Service said they found that ...
First Republic Bank maintained its lead as the top contributor to jumbo mortgage-backed securities issued in the first quarter of 2015, according to a ranking by Inside Nonconforming Markets. First Republic was identified as contributing $1.43 billion to jumbo MBS issued during the quarter, accounting for 31.0 percent of all jumbo MBS activity. The bank was also the top jumbo MBS contributor for all of 2014, with $1.46 billion in identified contributions ... [Includes one data chart]
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