There’s a sharp divide in the mortgage industry regarding the prospects for originations of non-qualified mortgages. Smaller nonbanks that focus on such products have high hopes for the non-QM sector while larger lenders have low expectations. Justin Mahoney, a senior portfolio manager at SG Capital Partners, a non-QM lender, noted that the nonprime mortgage originations market is the only lending sector that hasn’t recovered since the financial crisis. “It represents a real growth opportunity ...
Lending units affiliated with Angel Oak Companies reported a record $512.0 million in originations of non-qualified mortgages for the second quarter of 2018, putting the nonbank on pace to top $1.0 billion in production this year. Angel Oak’s non-QM production increased by 52.0 percent from the previous quarter and nearly doubled its originations of a year ago. Angel Oak’s various production entities added 104 employees during the second quarter for a total of 527 staff members ...
Annaly Capital Management plans to include a much higher share of non-qualified mortgages in its latest non-agency mortgage-backed security than the first deal issued by the real estate investment trust this year. Non-QMs will account for 45.4 percent of the $383.5 million issuance, according to presale reports by Fitch Ratings and Kroll Bond Rating Agency. Annaly’s first MBS was largely stocked with loans that had seasoned for at least 10 years – well before the QM rule came along ...
Redwood Trust plans to raise $103.13 million with the sale of 6.25 million shares of common stock. The sale closed this week, though the underwriters of the transaction have 30 days to purchase up to an additional 937,500 shares of Redwood’s common stock, which could provide the real estate investment trust with up to $116.9 million in net proceeds after transaction expenses. The sale follows an offering of convertible senior notes in Redwood in June with a principal amount of $200.0 million ...
Moves by three issuers of prime non-agency mortgage-backed securities to allow for third-party due diligence reviews to be completed on fewer than 100 percent of the loans in an MBS could increase the risk of losses for MBS investors, according to Moody’s Investors Service. In a report released this week, Moody’s said narrower due diligence reviews increase the likelihood of defective loans appearing in non-agency MBS. The rating service added that representations ... [Includes five briefs]
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