Adjustable-rate mortgage originations increased by 19.5 percent during the second quarter of 2015, but ARM production this year trails 2014 levels significantly. An estimated $49.0 billion in ARMs were originated in the second quarter, bringing the total for 2015 to $90.0 billion. That represented just 11.2 percent of total first-lien originations for the first half of the year, compared with 18.9 percent over the first six months of 2014. Interest rates ... [Includes one data chart]
Information regarding the $72.11 million non-agency mortgage-backed security from Lone Star Funds’ Colt Funding has been limited, although a document obtained by Inside Nonconforming Markets provides some more details on the deal. COLT 2015-A was the first non-agency MBS to be backed predominantly by non-qualified mortgages. Credit Suisse was the lead manager, and U.S. Bank is the trustee. The MBS was backed by mortgages originated by Caliber Home Loans ...
EverBank Financial has been able to maintain strong loan performance while building up its jumbo originations. EverBank had $1.46 billion in jumbo originations during the second quarter of 2015, up 31.6 percent from a year ago. The bank’s originations of conventional mortgages increased by 11.9 percent in that span, hitting $1.26 billion in the second quarter. In August, Moody’s Investors Service reaffirmed its rating of EverBank as a “strong” originator of jumbo mortgages ...
Unfavorable economics and new regulations appear to have slowed the issuance of jumbo mortgage-backed securities in recent months. New deals from Credit Suisse and Two Harbors Investment suggest that the market could be regaining its legs in September. Mid-way through the third quarter of 2015, only four jumbo MBS had been priced, according to the Inside Mortgage Finance MBS Database. An average of about 11 deals per quarter have been issued in the past year ...
While the vast majority of jumbo mortgages being originated continue to feature tight underwriting standards, some lenders are willing to offer unique jumbos, with downpayments as low as 5 percent or allowing for borrowers who are unemployed. Parkside Lending recently launched a jumbo that allows for combined loan-to-value ratios as high as 95 percent. The lender doesn’t require mortgage insurance on the loans. “We believe our new jumbo loan offering ...
Members of Congress from both sides of the aisle – and even some regulators – are pushing for legislation to broaden the types of loans that receive protections allotted to qualified mortgages. A number of issues remain in flux, including how widely the expanded QM definition would be applied and whether there is enough urgency to pass a bill before the end of the year. Last week, Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., detailed ...
A portfolio of $16.53 million non-qualified mortgages is available for sale, according to an announcement last week by Mortgage Industry Advisory Corp. The jumbo adjustable-rate mortgages were originated by a “large Midwest bank” and are lightly seasoned, according to MIAC. The loans have an average unpaid principal balance of $688,855 and an average interest rate of 3.661 percent. The loans are largely purchase mortgages and ... [Includes two briefs]
Securitized FHA,VA and rural housing loans in Ginnie Mae mortgage-backed securities totaled $188.5 billion in the first six months of 2015, fueled by significant purchase and refinance activity, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. An estimated $113.4 billion in FHA-insured mortgages were securitized during the first half of the year. Of that total, $60.6 billion were purchase mortgages and $44.2 billion were refinance loans. FHA purchase-loan production increased 58.8 percent in the second quarter from the prior quarter while refi lending jumped 160.8 percent over the same period as FHA’s reduced annual mortgage insurance premium began to take hold. The FHA loans that went into Ginnie MBS showed an average loan-to-value ratio of 92.8 percent and an average debt-to-income ratio of 39.7 percent. Borrowers’ average FICO score was 675.9, which was indicative of ... [ 2 charts ]
The FHA has discovered glitches in FHA Connection and in the Home Equity Conversion Mortgage calculation software, which are creating problems for HECM lenders. A bad field edit in FHA Connection is preventing mortgagees from completing their on-screen financial assessment update on HECMs with negative residual income. This hinders submission of reverse-mortgage transactions to FHA for insurance. The FHA has issued temporary procedures that include instructions on submitting a request for a waiver of penalties for late payment of mortgage insurance premiums on closed loans. The agency was also alerted to a second technical problem following the release of the HECM Calculator, Version 2.2. The software incorrectly defaults, in some cases, to the 2.5 mortgage insurance premium rate when a value is entered in the Cash from Borrower and Cash from Lender fields. The FHA is also issuing ...
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