For a sector that originates, at best, $5 billion a year, the fledgling subprime mortgage industry is garnering a bit of attention these days, though most investors do not publicize their interest. One nonprime executive who has received funding and spoke under the condition his name not be used described his suitors as hedge funds, private-equity firms and real estate investment trusts. He also mentioned “rich” individuals looking to put money to work. To date, the largest investment in a subprime/non-agency lender appears...
Wells Fargo is reportedly under investigation for a practice that banks across the industry have relied on for years: cross-selling financial products to their customers. Big banks have been particularly upfront about how they see jumbo mortgages originated for portfolio as a way to cross-sell other products. Cross-selling financial products occurred without much regulatory scrutiny until a lawsuit by the Los Angeles City Attorney in May. LA City Attorney Mike Feuer alleged that Wells’ cross-selling activities violated California’s unfair competition law. The Office of the Comptroller of the Currency and the Federal Reserve Bank of San Francisco are also reportedly investigating Wells’ cross-selling. Feuer alleged...
Combining the Home Equity Conversion Mortgage program and the traditional forward mortgage program in assessing the soundness of the FHA Mutual Mortgage Insurance Fund could produce inaccurate results and ill-advised policy changes, warned the Urban Institute. Analysts at the institute said the FHA’s basis for assessing the MMI Fund’s solvency creates a distorted picture of the value of the fund and that the agency should separately assess its forward and reverse mortgage businesses to get an accurate picture of their performance and impact on the fund. The FY 2015 actuarial report drew...
Ellington Financial, a REIT that carries an 11.20 percent dividend and yield, has admitted to buying non-QM loans in past filings with the SEC, but has not racked up huge volumes...
In percentage terms, the sharpest downturn was in home-equity ABS, although this sector represented just 1.6 percent of bank ABS investment and there has been no new production in years.
Hope Now said 75,969 foreclosure sales were completed in the third quarter of 2015, a 15.0 percent sequential decline and down 30.8 percent compared to 3Q14
HomeUnion Lending is licensed to operate in Alabama, Florida, Indiana, Iowa, and Oklahoma, but plans on expanding its reach to 16 more states by the end of March 2016.
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