Redwood Trust plans to raise $103.13 million with the sale of 6.25 million shares of common stock. The sale closed this week, though the underwriters of the transaction have 30 days to purchase up to an additional 937,500 shares of Redwood’s common stock, which could provide the real estate investment trust with up to $116.9 million in net proceeds after transaction expenses. The sale follows an offering of convertible senior notes in Redwood in June with a principal amount of $200.0 million ...

Moves by three issuers of prime non-agency mortgage-backed securities to allow for third-party due diligence reviews to be completed on fewer than 100 percent of the loans in an MBS could increase the risk of losses for MBS investors, according to Moody’s Investors Service. In a report released this week, Moody’s said narrower due diligence reviews increase the likelihood of defective loans appearing in non-agency MBS. The rating service added that representations ... [Includes five briefs]

As the merger with PHH moves closer, Ocwen continues to bleed red ink...

With the stock sale pending, Redwood disclosed preliminary details about its earnings for the second quarter…

Moody’s: Reps and warrants aren’t as effective as reviewing every mortgage in a deal pre-securitization…

Since 2015, Angel Oak Capital Advisors has completed seven non-QM securitizations...

Slightly over half were deals backed by newly originated mortgages…

Don Brown of Optimal Blue: The industry is “at or near a high-water mark” in terms of the number of mortgage investors.

The judges opined: "Indeed, the GSEs lost more in 2008 ($108 billion) than they had earned in the previous thirty-seven years combined ($95 billion). Yet the GSEs remained solvent.”

Some Wall Street firms are now quietly extending repo lines to originators of non-QMs...