Industry attorneys are warning about a “third wave” of Lehman Brothers Holdings (LBHI) MBS trust claims against mortgage lenders and brokers based on the firm’s latest bankruptcy filing. Attorneys with the firm American Mortgage Law Group said Lehman Brothers for several years has been threatening to file residential MBS trust claims against the mortgage industry to counter trustee claims filed against LBHI in bankruptcy in 2009. The wait is...

Issuance of ABS backed by nonprime personal installment loans is expected to increase, according to S&P Global Ratings. The rating service hasn’t assigned AAA ratings to such ABS, though S&P said it will approach each deal on a case-by-case basis. Between 2013 and 2016, $10.50 billion of ABS backed by branch-based unsecured personal installment loans was issued, according to S&P. The rating service highlighted the sector recently, noting that personal installment loans don’t receive as much attention as marketplace lending, which had $15.10 billion in MBS and ABS issuance between 2013 and 2016. “Branch-based fixed-rate, fixed-term unsecured personal installment loans may not be...

The Lone Star MBS received AAA ratings with credit enhancement of 34.10 percent on the senior tranche.

Originations of non-agency jumbo mortgages in the first quarter of 2017 were down by 29.0 percent from the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. A decline in refinance activity contributed to the sharp drop in jumbo funding. An estimated $71.00 billion of non-agency jumbos were originated during the quarter. Not only did volume fall significantly from the fourth quarter of 2016, production was ... [Includes one data chart]

Redwood Trust posted $37.0 million of net income in the first quarter of 2017, up 45.8 percent from the previous quarter and more than double the net income the real estate investment trust reported for the first quarter of 2016. Income from Redwood’s mortgage-banking activities was boosted by higher loan purchase volume and strong demand in the secondary market for jumbo mortgages. Redwood purchased jumbo mortgages with a total unpaid principal balance of ...

Impac Mortgage Holdings has significantly increased its originations of non-qualified mortgages and plans to package the loans into non-agency mortgage-backed securities. The nonbank originated $184.3 million of non-QMs in the first quarter of 2017, up from $86.3 million in the previous period. In all of 2016, Impac originated $289.6 million in non-QMs. The product accounted for 11.6 percent of Impac’s originations in the first quarter, up from a 2.8 percent share the previous period ...

Investors showed strong appetite for the largest non-agency mortgage-backed security backed by post-crisis nonprime originations. The $402.65 million COLT 2017-1 priced at tighter yields than any other post-crisis rated nonprime MBS amid stronger demand for mortgage credit, according to analysts at Deutsche Bank Securities. The deal from an affiliate of Lone Star Funds priced near the end of April and closed last week. “The transaction was priced at the tightest level ...

More buyers and sellers are getting into the whole-loan market for non-jumbo loans, especially nonprime mortgages, industry experts said. That’s especially true for loans that don’t meet the qualified-mortgage standard, said Matthew Nichols, CEO and founder, Deephaven Mortgage, during a panel session at last week’s secondary market conference sponsored by the Mortgage Bankers Association. Three keys spurred the market last year, he explained. First, performance of ...

Ocwen Financial announced last week that it’s negotiating an agreement with New Residential Investment involving mortgage servicing rights for non-agency mortgages. The agreement would reduce the servicing fee Ocwen receives but provide the company some stability and an equity investment. Before the agreement, New Residential owned rights to MSR on mortgages serviced by Ocwen with an unpaid principal balance of $117.0 billion. The loans are in non-agency ...

Nonprime mortgages held by the government-sponsored enterprises continued a gradual decline in the first quarter of 2017, according to an analysis by Inside Nonconforming Markets. Fannie Mae and Freddie Mac held nonprime mortgages with a total unpaid principal balance of $133.89 billion at the end of the quarter, down 5.3 percent from the end of 2016 and down 22.1 percent from the first quarter of last year. The holdings are largely ... [Includes one data chart]