An increase in interest rates will help boost originations of non-agency nonprime mortgages, according to panelists at a webinar hosted by Inside Mortgage Finance this week. Higher interest rates will make it less attractive for prime borrowers to refinance, which could force lenders to look for volume elsewhere, including the nonprime market. Purchase mortgages account for a large share of the nonprime loans originated in recent years and higher interest rates could also increase nonprime mortgages aimed at debt consolidation. Matthew Nichols, CEO of Deephaven Mortgage, said...
Candidate Clinton noted: “But when community banks and credit unions offer mortgages, they’re looking to invest in their neighborhoods and communities to help them grow and prosper…”
Lone Star Funds is preparing to issue a $216.97 million MBS backed by newly originated nonprime mortgages, according to presale reports published this week. The deal will help the market for new nonprime MBS outpace issuance of jumbo MBS, at least momentarily. Last month, Deephaven Mortgage issued a $154.33 million MBS backed by new nonprime mortgages and Angel Oak Capital Advisors issued a $132.65 million MBS, neither of which received credit ratings. Lone Star’s COLT 2016-2 is scheduled to close next week. Two jumbo MBS were issued...
Investor demand for nonprime whole loans is increasing – which is a good thing for primary market originators – but will it create problems for firms that want to issue securities? In some quarters, there’s a concern that if enough investors appear, it will increase whole-loan prices, making securitization less economical and therefore more difficult. “We’re definitely seeing...
Bank and thrift holdings of first-lien mortgages increased by 2.4 percent in the second quarter of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. The holdings were boosted by jumbo mortgages, with few of the loans being delivered into mortgage-backed securities. Banks and thrifts held $1.90 trillion in first liens as of the end of June, up $44.22 billion from the end of March. Some $101.00 billion in jumbos were ... [Includes one data chart]
The next mortgage-backed security from Lone Star Funds backed by new nonprime originations will be larger than the deal it issued in June, according to presale reports published this week. The planned $216.97 million COLT 2016-2 will be the largest MBS backed by post-crisis nonprime originations, topping the $161.71 million COLT 2016-1. The MBS scheduled to close next week differs in some ways from the previous MBS from Lone Star. The firm’s Caliber Home Loans ...
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