The non-agency MBS market is set to receive a jolt as Wells Fargo plans to return to the space. “This year, one of our aspirations is to come back to the market with a couple of deals,” said Franklin Codel, a senior executive vice president of consumer lending at Wells. “We’re taking a look to make sure we can structure those properly … to try to test the market and see what we can do to bring some confidence back to the private-label market.” The official mentioned the plans late last week during an investor event hosted by Wells. Back in 2007, Wells ranked...

President Trump’s tax plan would raise the federal debt, but could benefit residential MBS, consumer ABS and asset-backed commercial paper, depending mostly on the effect on the underlying obligors’ after-tax income, according to a recent research report from Moody’s Investors Service. “The administration’s blueprint proposes a reduction in the corporate tax rate to 15 percent from 35 percent, which would also apply to partnerships and other ‘pass-through’ businesses that are currently taxed through their principals’ individual returns,” analysts explained. The White House plan also features...

But can Walter/Ditech grow its lending business in a highly competitive market?

The MBS collateral includes mortgages from several originators, led by wholesaler United Shore Financial Services…

The nonprime residential market is getting more attention as the big product categories hit the skids.

Nonprime products such as subprime and non-qualified mortgage loans held up better than industry mainstays during the sharp drop in origination volume in the first quarter of this year, according to a new Inside Mortgage Finance ranking and analysis. Conventional conforming remained the biggest component of the market, accounting for 53.0 percent of first-lien mortgage originations in the first three months of 2017. But the estimated $204.0 billion of such loans produced during the period was down 36.6 percent from the fourth quarter. Government-insured lending was...[Includes two data tables]

Mortgage performance improved in the first quarter of 2017, recovering from a somewhat unexpected increase in delinquencies at the end of 2016. The total delinquency rate in the Inside Mortgage Finance Large Servicer Delinquency Index was 4.28 percent as of the end of March, down from 5.05 percent at the end of the previous quarter and improving on the 4.95 percent delinquency rate recorded in March 2016. Among the 32 servicers in the large delinquency index, only two reported...[Includes one data table]

Performance of non-QM loans has been strong, buoyed by good house-price appreciation and the fact there have been no lawsuits based on the ability-to-repay rule.

Redwood generally prefers to have multiple execution options. The company is considering issuing MBS backed solely by Choice mortgages.

Deutsche noted that after years of a steady broad-based housing market recovery “investors are now facing severe shortages in distressed housing pipelines.”