The majority of loans in expanded-credit mortgage-backed securities are adjustable-rate mortgages, while such loans are few and far between in prime non-agency MBS, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]
More competition is coming into the nascent business of aggregating non-qualified mortgages and issuing mortgage-backed securities drawn by the market’s potential for profitable growth.
Redwood Trust, which helped pioneer the return of the jumbo mortgage-backed securities market earlier in the decade, reported net earnings of $33.0 million for the second quarter, down 29.7 percent from the previous period.
Citadel Servicing Corp., Irvine, CA, originated $389.3 million of non-qualified mortgages during the second quarter, a 32.3 percent sequential gain, according to figures the company provided to Inside Nonconforming Markets this week.
Some post-crisis jumbo mortgages that experienced a foreclosure or other liquidation led to large losses even though the properties experienced significant home-price appreciation, according to an analysis by Kroll Bond Rating Agency.
loanDepot is an “average” originator of prime jumbo mortgages and loans eligible for sale to the government-sponsored enterprises, according to Moody’s Investors Service.
RSS