Issuance trends for non-agency mortgage-backed securities stocked with newly-originated mortgages were mixed in the third quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Issuance of prime non-agency MBS declined significantly on a sequential basis in the third quarter. And for the first time, expanded-credit MBS issuance volume topped prime non-agency MBS activity. Some $3.58 billion of expanded-credit MBS was ... [Includes one data chart]
Mortgage Venture Partners, an aggregator, is acquiring a number of new non-agency products with plans to issue mortgage-backed securities. The first deals from MVP are expected by the first quarter of 2019. Jennifer McGuinness, head of aggregation and structured finance at MVP, said that in the past two years, the firm has focused on acquiring first-lien home-equity lines of credit from banks. “It’s a first lien on assets, giving the borrower the ability to tap their equity but also use it as ...
Deephaven Mortgage’s recent adoption of an automated system to pre-qualify expanded-credit borrowers has prompted some speculation about whether fully automated underwriting systems could be used for originations of non-qualified mortgages. A number of expanded-credit lenders at the ABS East conference suggested that some automated underwriting is possible, but some aspects of the non-QM underwriting process will likely need human intervention. The conference was ...
Non-agency mortgages underwritten with just one monthly bank statement from the borrower might not meet standards set by the ability-to-repay rule, according to Eric Kaplan, director of the housing finance program at the Milken Institute’s Center for Financial Markets. Speaking at the ABS East conference produced by Information Management Network last week in Miami Beach, Kaplan was among the industry participants that raised concerns about how quickly underwriting has loosened ...
American International Group is increasing the speed of its jumbo mortgage-backed security issuance and receiving better treatment in terms of credit enhancement requirements. An affiliate of AIG is preparing to issue a $395.7 million deal, according to presale reports released this week by Fitch Ratings and Kroll Bond Rating Agency. The issuance follows deals in March, May and September. The average loan age in AIG securities is also declining. Mortgages in the pending MBS have seasoned for ...
Quicken Loans recently made a number of adjustments to its underwriting standards for jumbo mortgages, including allowing for lower downpayment requirements and increasing amounts available for cash-out refinances. For certain jumbos, Quicken will now allow downpayments as low as 10.0 percent with no mortgage insurance required. To qualify, the loan amount must be less than $1.0 million and a borrower must generally have a credit score of at least 760 and a debt-to-income ratio ...
FHA home-equity conversion mortgages have dominated originations of reverse mortgages but tighter underwriting requirements on HECMs are expected to prompt issuance of non-agency mortgage-backed securities backed by conventional reverse mortgages, according to industry analysts. “Many originators that were solely dependent on HECM originations have begun to diversify into jumbo, uninsured, proprietary reverse mortgages, which allow higher proceeds amounts than HECMs,” ...
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