Although most of the major non-agency segments posted solid increases, the scratch-and-dent market was the star of the show.

A total of $13.38 billion of non-agency MBS was issued during the first quarter of 2017, a sharp 67.1 percent jump from the final quarter of last year, a new Inside MBS & ABS analysis and ranking reveals. Although most of the major segments posted solid increases, the scratch-and-dent market was the star of the show. The $8.09 billion of these deals issued in the first three months of the new year represented 60.5 percent of total production and it more than doubled the fourth-quarter total. The top two issuers of non-agency MBS – Chimera Investment and Cerberus Capital – earned...[Includes three data tables]

The pending issuance will largely be backed by purchase mortgages...

Ocwen added: “The substantive allegations in today’s suit are inaccurate and unfounded.”

Based on mortgage results reported thus far, the first quarter was a nasty time for new originations for both the megabanks and some of the regionals, with non-depositories reporting slightly more benign production figures. Market leader Wells Fargo posted a hefty 38.9 percent one-quarter drop in mortgage originations. Second-ranked JPMorgan Chase reported a slightly less severe 23.0 percent drop in home loan funding. Citigroup, which a few months back made a strategic decision to deemphasize its role in home lending, suffered a 32.1 percent drop. Then there’s...

Most of the banks’ non-QMs received that designation due to high debt-to-income ratios.

We understand that some surprising names are beginning to show up at auctions for nonprime, non-agency whole loans...

Moody’s believes servicing acquisitions by Ocwen will be limited by franchise uncertainty, capital constraints and a highly competitive market…

Average DTI ratios on prime non-agency MBS range from 30.0 percent to 33.0 percent in any given quarter.

While the market for nonprime MBS was relatively strong during the first quarter, Moody’s said some investors have shied away from the sector.