While private mortgage insurance on new non-agency mortgage originations has been minimal since 2008, some industry participants project that private MI will play a role in the non-agency mortgage-backed security market going forward. “Mortgage insurers may get more involved with the private-label market, and this may be another source of third-party oversight,” Morningstar Credit Ratings said in a recent report. “While it is too early to predict the investors’ response to ...
Underwriting standards for jumbo non-qualified mortgages were largely unchanged in the second quarter of 2016 compared with the previous period, according to the Federal Reserve’s senior loan officer opinion survey. Some 53 respondents didn’t change their underwriting standards for the loans compared with the previous quarter, while three respondents loosened underwriting for the loans “somewhat” and two tightened somewhat. Four of the ... [Includes two briefs]
Almost three months after word leaked out that Angel Oak Capital Advisors was working on a second nonprime MBS, the transaction has yet to come to market. Sources close to the company, maintain that a deal is still in the works – it’s just a matter of when. The company had planned to sell a roughly $150 million MBS backed by nonprime residential loans funded by affiliates Angel Oak Home Loans, a retail shop based in Atlanta, and Angel Oak Mortgage Solutions, a wholesaler that originates through loan brokers. Presently, the Angel Oak firms are churning out...
Two Harbors Investment and other nonbank conduits exited the jumbo market just before pricing for new jumbo mortgage-backed securities improved, according to industry participants. “The difference between a bulk sale execution and a Sequoia execution right now is only an eighth of a point,” Marty Hughes, CEO of Redwood Trust, said this week during the real estate investment trust’s earnings call. “That’s the tightest it’s probably been in a year and a half.” Christopher Abate, Redwood’s ...
Two Harbors Investment more than doubled its jumbo mortgage-backed security issuance in 2015 compared with the previous year, but the increase wasn’t enough to make it worthwhile for the real estate investment trust to continue operating a mortgage conduit. “As we look forward, the environment just was not one that was conducive to the continuation of the business,” Thomas Siering, Two Harbors’ president and CEO, said last week during the REIT’s earnings call. “The market ...
The proposed rule from the Consumer Financial Protection Bureau addressing the TILA-RESPA Integrated Disclosure rule will likely help the non-agency market, according to industry participants. However, there’s also some frustration that the CFPB didn’t do as much as it could have to address cures and assignee liability. Industry attorneys note that if enough comments are submitted on the issues, the CFPB might make further changes to TRID. The changes proposed by the CFPB ...
Many servicers increased their jumbo portfolios during the second quarter, including both banks and nonbanks, according to a new ranking and analysis by Inside Nonconforming Markets. A group of 30 servicers handled an estimated $863.40 billion in jumbo mortgages as of the end of June, up 2.0 percent from the previous quarter and up 10.7 percent from the same time last year. Wells Fargo, the top jumbo lender, is also the largest jumbo servicer ... [Includes one data chart]
Among the top 15 subprime servicers, only Caliber Home Loans increased its portfolio during the second quarter of 2016, according to a new ranking and analysis by Inside Nonconforming Markets. Caliber handled $18.62 billion in subprime mortgages as of the end of June, up 4.4 percent from March. During that span, the total amount of subprime mortgage outstanding fell by 4.2 percent to an estimated $275.00 billion. Caliber has been originating ... [Includes one data chart]
Originations of non-qualified mortgages by Impac Mortgage Holdings declined in the second quarter of 2016 after rising steadily since the nonbank launched its non-QM program in 2014. Company officials pointed to low interest rates and demand for refinances of conventional mortgages for the decline. Impac originated $60.3 million in non-QMs in the second quarter, down from $74.0 million in originations in the first three months of the year. “Demand for non-QM loans has ...
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