“The most common example is a loan program for self-employed borrowers that relies on bank statements, rather than tax returns, to determine income,” Fitch said.

The U.S. Court of Appeals for the Eighth Circuit this week affirmed rulings from lower courts, noting that the “change in terms” agreement between Lapides and the lender was unenforceable.

Only one servicer among the top 15 – Caliber Home Loans – avoided a decrease in subprime MSRs...

Quicken Loans is contributing 17.1 percent of the mortgages to the new jumbo MBS from Credit Suisse.

Remember the nonprime MBS deal that Angel Oak was working on with Nomura? The transaction may be on again...

HomeReady will become part of DU later this year and replaces the MyCommunityMortgage product, which in some circles was known as Fannie’s “subprime” option.

However, the ground breaking MBS from Lone Star did not receive ratings and was not subject to requirements from the SEC regarding the disclosure of third-party due diligence.

More than a year after the Consumer Financial Protection Bureau’s standards for qualified mortgages took effect, originations of near-prime non-QMs remain limited. However, industry participants are optimistic that originations will pick up and Lone Star Funds recently jolted the sector with a non-agency mortgage-backed security. The $72 million non-agency MBS from Lone Star was backed by non-QMs originated by Caliber Home Loans, a lender owned by the private-equity firm ...

Potential issuers of non-agency mortgage-backed securities looking to loosen underwriting standards on loans to be included in MBS are getting tough feedback from rating services. Fitch Ratings said last week that non-qualified mortgages with weak income documentation would likely face a “double penalty” compared with a similar non-QM that meet the documentation standards set for QMs. Non-QMs with “alternative documentation” included in non-agency MBS would ...

Issuance of jumbo mortgage-backed securities has slowed somewhat this summer, with a lack of consensus from industry participants on whether it’s worth participating in the market. Barclays Capital, which helps fund jumbo MBS activity, said the deals offer about 50 basis points of option-adjusted spread compared with agency MBS. Analysts at Barclays said newly-issued jumbo MBS are attractive for investors less concerned about liquidity. Officials at Anworth Mortgage Asset Corp ...