The $395.8 million nonprime mortgage-backed security Angel Oak Capital Advisors closed this week was met with strong demand from investors, according to the firm. “We believe that, relative to other recent [non-qualified mortgage] transactions, the tight pricing of AOMT 2018-3 demonstrates that investors have the confidence in and demand for the Angel Oak securitization program,” said Lauren Hedvat, a managing director of capital markets at Angel Oak. Pricing spreads ...
Western Asset Mortgage Capital Corp. is among a number of nonbanks investing in non-qualified mortgages. Officials at the real estate investment trust suggest that its investment strategy differs from many of the other buyers in the sector. “Our strategy for non-QMs is quite different relative to all other market participants,” said Anupam Agarwal, WAMCC’s CIO, during the REIT’s recent earnings call. He noted that WAMCC is acquiring non-QMs with strong credit scores and low loan-to-value ratios ...
Starwood Property Trust plans to be a regular issuer of mortgage-backed securities backed by non-qualified mortgages after successfully closing its first deal this week. Loans in the $374.1 million issuance were sourced from Impac Mortgage Holdings, which is working to increase non-QM production, delivering the loans to Starwood and potentially other outlets. Jeffrey DiModica, president of Starwood Property Trust, said the real estate investment trust expects to be a “frequent issuer” ...
Ellington Financial could issue its second mortgage-backed security backed by non-qualified mortgages before yearend, according to officials at the nonbank. “We are nearing critical mass of product for a follow-on securitization and plan for that later this year, subject, of course, to market conditions,” said Laurence Penn, Ellington’s CEO and president. At the end of the June, Ellington held $150.2 million of non-QMs. Mark Tecotzky, co-CIO at Ellington, noted that the firm is increasing ...
Two lenders recently launched proprietary reverse-mortgage products. Quicken Loans’ One Reverse Mortgage unit is offering Home Equity Loan Optimizer. “With HELO, many high-value homes, condominiums, and solar-panel homes may qualify for a reverse mortgage,” One Reverse said. “Along with that, there is no mortgage insurance premium required and the amount clients may receive in proceeds is up to $4.0 million.” Longbridge Financial launched its Platinum ... [Includes two briefs]
With refinance business drying up, more lenders and loan aggregators are entering the expanded-credit market, launching non-qualified mortgage programs and other products.
Mortgage lenders became slightly more daring in terms of the credit characteristics of the loans they sold to Fannie Mae and Freddie Mac during the second quarter of 2018, according to an exclusive new Inside Mortgage Trends analysis and ranking. [Includes two data charts.]
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