Wells Fargo was the top home equity lender in 2017 with total second lien production of $24.8 billion, according to a tally from Inside Mortgage Finance…
“The short-term nature of the collateral paired with an attractive yield makes for a rare opportunity in today’s investing climate,” said Angel Oak’s Sreeni Prabhu…
The home-equity lending business quietly built some momentum over the past three years after nosediving in the aftermath of the housing-market meltdown, but its future growth will depend on several moving parts.
The Department of Housing and Urban Development and the Federal Deposit Insurance Corp. have announced offerings of multiple residential reverse mortgage pools for sale to investors. The HUD pools are comprised of approximately 650 reverse mortgage notes with a total loan balance of about $136 million. The sale consists of due and payable first-lien reverse mortgages secured by single-family, vacant residential properties where all borrowers are deceased and none is survived by a non-borrowing spouse. The reverse-mortgage sale is the third offering of its type. As with past offerings, the sale will be by competitive bidding on April 11, 2018. The loans will be sold without FHA insurance and with servicing released. The loans are expected to be offered in regional pools. Meanwhile, the FDIC will unload in open auction 3,280 FHA-insured reverse-mortgage loans from the ...
The reverse-mortgage industry is in an uncomfortable place in the first quarter of 2018 due to lower volumes, higher costs and lower margins – the same issues that ail the traditional forward-lending business currently, says a new analysis by the Stratmor Group. Applications and counseling requests are down more than expected for this time of the year despite the recent rule changes implemented by the Department of Housing and Urban Development to ensure the long-term viability of the Home Equity Conversion Mortgage program. Stratmor projects HECM volume at $1.6 billion in 2018, down from approximately $2.0 billion in 2017, due mainly to dwindling refinances. “Given the reduction in the interest-rate floor, it is reasonable to expect that gain-on-sale margins will decline, but just how far, who knows,” said Jim Cameron, a senior partner at Stratmor. “The reduction in unit ...
Banks and thrifts increased their first-lien holdings by 4.1 percent in 2017, according to a new ranking and analysis by Inside Nonconforming Markets. Big banks continue to retain jumbo mortgages in portfolio along with some loans eligible for sale to the government-sponsored enterprises. A total of $2.01 trillion in first-lien mortgages were held by banks and thrifts as of the end of 2017, up 1.2 percent from the end of September. Adjustable-rate mortgages ... [Includes one data chart]
Issuance of non-agency mortgage-backed securities backed by non-qualified mortgages could triple this year, according to Jeremy Schneider, a senior director at S&P Global Ratings. According to Inside Nonconforming Markets, $4.08 billion of expanded credit non-agency MBS was issued in 2017, with non-QMs accounting for a large share of the issuance. Schneider and other industry participants discussed non-QMs at the SFIG Vegas conference produced by Information ...
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