Although commercial banks are making money hand-over-first these days, that doesn’t mean national bank regulators shouldn’t worry.

Redwood believes the new QC process creates a much larger sample size and a more efficient loan quality feedback loop ...

Issuers considering including a deal agent in new non-agency MBS will have to look to investors to pay up for the feature as there won’t be much of a rating benefit, according to Fitch Ratings. Some investors have been pushing for a deal agent that would have oversight of various participants in the transaction along with a fiduciary duty to investors. Broad outlines for deal agent responsibilities have been established, but details regarding compensation remain uncertain. Some issuers, including Redwood Trust, have indicated...

Verizon Wireless is preparing to package the payment plans on more than 3.09 million cell phones into an ABS, marking the first time an ABS in the U.S. will be backed by such collateral. The planned $1.17 billion Verizon Owner Trust 2016-1 received preliminary AAA ratings from Fitch Ratings and Standard & Poor’s. “It’s the most interesting type of consumer ABS product we’ve seen in a long time,” said Darrell Wheeler, head of research for global structured finance at S&P. “And obviously, with the amount of phones in the market today, it has a lot of potential.” Analysts at Moody’s Investors Service noted...

Marketplace lender Social Finance is contemplating a securitization of jumbo mortgages, according to industry officials who claim to have knowledge of the firm’s operations. The news comes amid an interesting time for the jumbo loan market: production volumes are generally strong and likely will be boosted even more by the recent decline in interest rates. But even established nonbank players have been avoiding the securitization route, opting instead to sell newly originated jumbos to commercial banks. SoFi, as the privately held company is known, has been placing...

The concerns among participants in the jumbo MBS market regarding the TILA-RESPA Integrated Disclosure rule might have been much ado about nothing. A new report from Moody’s Investors Service suggests that TRID violations won’t materially increase losses in jumbo MBS. The rating service said third-party due diligence reviews will identify loans in violation of TRID, and lenders and aggregators will be able to cure many TRID violations before the mortgages are placed in jumbo MBS. Three jumbo MBS have included...

Fannie Mae and Freddie Mac saw significant increases in the flow of both refinance loans and purchase-money mortgages during the second quarter of 2016, according to a new ranking and analysis by Inside Mortgage Finance. And for the first time in a long while, nonbank mortgage companies delivered over half of the single-family mortgages securitized by the two government-sponsored enterprises. Fannie and Freddie securitized...[Includes three data tables]

The rating service said the expected loss benefit at the AAA level will likely be modest or immaterial for most transactions.

Prime non-agency MBS issuance in the second quarter of 2016 was down by 74.1 percent from the previous quarter.

A limited number of mortgages with TRID errors have already been included in jumbo MBS…