Some 59.6 percent of new issuance in the first quarter consisted of re-securitizations and deals backed by seasoned re-performing and nonperforming loans...
Over the past year, The Blackstone Group has been aggressively expanding into many facets of the mortgage business and is now ready to make what might be considered a bold move: investing and originating in residential loans that don’t meet the qualified-mortgage test. But just how big might Blackstone get? That’s hard to say at this point. A source inside the company, who spoke under the condition his name not be used, confirmed...
The source continued: “Fannie and Freddie have the right to put non-compliant loans back to the originator. Eventually, someone will ask whether they knowingly bought loans that had TRID violations…"
As IMFnews reported recently: one nonbank lender had a $910,000 jumbo mortgage rejected by a secondary market buyer because of a $19 TRID-related mistake on the disclosure form.
In 1Q, the residential MBS sector was down 7.1 percent from 4Q15 with $277.05 billion in new issuance. It was the lowest output since the second quarter of 2014...
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