Freddie Mac’s efforts to reduce holdings of nonprime mortgages and nonprime mortgage-backed securities are proceeding at a faster pace than efforts at Fannie Mae, according to a new analysis by Inside Nonconforming Markets. The government-sponsored enterprises had a combined $161.12 billion in nonprime holdings as of the end of the second quarter of 2016, down 6.3 percent from the first quarter and down 20.4 percent from the second ... [Includes one data chart]
S&P Global Ratings upgraded servicer ratings for Ocwen Loan Servicing to average from below average this week. Ocwen’s stock price increased significantly after the upgrade because of ratings clauses in Ocwen’s subservicing agreements with New Residential Investment. S&P downgraded Ocwen’s servicer ratings in June 2015 and if the ratings weren’t raised by April 2017, New Residential could transfer the subservicing to a different company. As of the end of ...
The senior tranche of the MBS will include credit enhancement of 6.40 percent, similar to the credit enhancement levels of previous deals from Two Harbors.
There’s more than $50.0 billion in capital ready to acquire new nonprime home loans, including non-qualified mortgages, according to Dan Perl, chairman and CEO of Citadel Servicing, a nonprime lender. “Liquidity is abundant,” he said last week at the California Mortgage Bankers Association’s Western Secondary Market Conference in San Francisco. “There is a ready market for this and I couldn’t say that two years ago.” William Pendleton, a senior vice president of portfolio lending at Caliber Home Loans, said...
One of the largest players in the "new" nonprime mortgage industry is Citadel Loan Servicing, Irvine, CA, which now has a portfolio totaling $600 million.
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