Texas sticks out like a sore thumb in its regulation of home-equity lending, but the swelling will be reduced somewhat after Lone Star voters approved an amendment to the state’s constitution that will loosen some of the rules.
Issuance of expanded-prime non-agency mortgage-backed securities is heating up with a new participant in the market and a quick second deal from Redwood Trust. Ellington Financial is preparing to issue its first non-agency MBS, which will largely consist of non-qualified mortgages originated by LendSure Mortgage. Morningstar Credit Ratings and S&P Global Ratings assigned preliminary AAA ratings to the deal this week. “Ellington Financial’s ability to access the robust securitization markets ...